A widow came to TAS for help because the IRS was trying to levy against her social security payments and that would cause her a financial hardship. The amount owed to the IRS was due to payroll taxes from her deceased husband’s business which had closed. The taxpayer stated that she sold her home and paid what she could, but was now living on social security. She stated she could not have her social security levied, as that was all she had to live on. The case advocate reviewed the taxpayer’s account and discovered that her husband’s business was incorporated and that she was not responsible for the payroll taxes.
The case advocate contacted the IRS Collection division and described the taxpayer’s problem. The taxpayer thought that because the lien notices came to her home, she was responsible. Her husband’s accountant advised her to pay all payroll tax balances owed by the corporation. She did so until she did not have any more assets to sell or money left to pay. TAS worked with the IRS to place the corporate accounts in Currently Not Collectible status and released the levy against her social security benefits. The case advocate assured the taxpayer she was not connected with the corporation’s tax issues. TAS also educated the widow by providing information on how to handle a dissolved corporation.