IRS Seizures

IRS LIEN AND IRS LEVY – CHARITABLE ORGANIZATIONS

By February 6, 2011 No Comments

A not-for-profit charitable organization which had failed to pay over its withholding taxes was seized by the IRS. Charitable donations plummeted. The services provided by the organization diminished and the needs of the poor who relied on such services could not immediately be attenuated.

Reliance on donations is difficult. Alienation of donors can be disastrous. Through a complicated application of laws and personal contact, there are ways to re-direct the donations to continue charitable works. The IRS has no motivation to stop charitable works, but it must collect taxes. Within a short time after the IRS seized the charitable organization, there were no funds left. We conferred with the IRS to sell a building that had been donated to the charitable organization and to use the proceeds from the sale to reduce the tax debt.

After comforting donors, a new charitable organization emerged.