Chapter 14 - Chapter 14 The Collection Process 1(A)Answer:...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 14 The Collection Process 1(A)Answer: No, since the IRS did not notify Oscar 30 days prior to the levy on his paycheck of their intention to do so as required under Code Sec. 6331(d). (B) Answer: Under Code Sec. 6334(d), the weekly amount of wages exempt from levy is equal to the taxpayer’s standard deduction and personal exemptions for the taxable year, divided by 52. 2. (A) Answer: The IRS will be entitled to $40,000 (plus expenses of levy and sale) of proceeds from the sale of the seized real estate pursuant to Code Sec. 6342(a). The first $125,000 would be paid to the mortgagee, assuming such security interest in the property was first in recording. The remaining proceeds would be turned over to the Bankrupts as there are no other security interests in their personal residence. (B) Answer: As only Bill is liable for the assessment and the property is not divisible, the entire personal residence could be sold pursuant to Code Sec. 6335(c). However, the IRS would only be entitled to $20,000, the amount of Bill’s equity in the property. If the Bankrupts amend their 2007 and 2008 returns and elect to file a joint return, they both would be liable for the resulting
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

Chapter 14 - Chapter 14 The Collection Process 1(A)Answer:...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online