Former US Senate Candidate Christine O’Donnell Mistakenly Slapped a Tax Levy by IRS
As per the impressive company known as Forbes, Christine O’Donnell, a former Senate candidate and Tea Party Activist, complains against repeated and erroneous tax levies being burdened upon her by the IRS. This would not be the first time this corrupt agency has gone after citizens who believe in a simplified tax code and a smaller government.
A series of mistaken tax levies by the IRS
The former Senate candidate claims that IRS has made another error with her taxes for the second time in five years, and with a levy this time. O’Donnell reportedly told The Washington Times, where she has an online column, she was recently advised by her bank that her account had been frozen by the IRS due to residual tax liabilities from the sale of her Delaware home in 2008.
This sale became a much publicized piece of news in 2010, when the IRS placed a tax lien on the property to settle her 2005 federal taxes due to the IRS. An irate O’Donnell says she was unaware about the lien when she sold it to her boyfriend.
According to O’Donnell, a tax lien on her former home was uncalled for. She says she informed the IRS that the sale of the home by her was done by the book with all transactions correctly reported. The IRS agreed with her and decided to remove the levy.
The IRS is showing bias again against Christine O’Donnell. This is not a banana republic.
However, along with the removal of the levy, the IRS also made her account balance zero. O’Donnell has complained that this behavior by the IRS is not a coincidence and that she is being targeted by the federal government for tax defaults deliberately for reasons unknown to her. How else can one explain a lien and levy for the same home transaction?
The difference between a lien and a tax levy
O’Donnell claims that she never received any notices of either a lien or a levy on her Delaware property and wonders why? The process of issuing a lien is that, when a person has a tax default and does not pay in a timely manner, the IRS places a claim on the property by issuing a Notice of Federal Tax Lien.
This is to inform buyers and creditors that the IRS has a legal right to the property and any proceeds from its sale to recover unpaid taxes. The lien being a public document that is recorded in Court became known to the general public in 2010. According to tax attorneys, a lien is removed once the tax debt is paid off.
A levy is different from a lien in the sense that it covers more of your assets. A 30 day notice has to be served before a levy is issued. The IRS has the power to levy ones wages, bank account, or property. A levy on wages means wages have to be paid to the IRS until all tax dues are cleared. An account levy freezes an individual’s bank account. Once the money in the account has been paid to the IRS the levy is lifted.
Christine O’Donnell speaks out against the levy
She said that the only taxes pending with the IRS is her current 2013 dues for which she has filed for extension. She was not expecting the IRS to jump the gun and levy her bank account. As a practicing tax attorney, she rightfully points out that the IRS needs to end her “ordeal” and do their “job right and not target individual tax payers”.
