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Thanks for your question and good afternoon.My sympathy here for your dilemma.
The IRS here regardless of the outcome of the judgment is superior to any other creditor.The government always has priority here in Texas.
No matter that the other judgement came first. Or does it at all no matter the date. Seems that is what you are saying.
The effective date in your case may run from the date of the appeals court decision.I would hope that was addressed in the court's decision.
Let me look quickly....
You need to also know that in Texas there is automatic right to one appeal , the court of appeals, the Supreme Court is discretinary.
What I am trying to point out is that chances they agree to hear it are numerically slim but you may be one of the lucky ones.
You may also have the option to refile bankruptcy here if the prior one was dismissed.
So, the judgement is now final, probably?
The basis for the supreme court angle is that 2 laws by supreme courts are in conflict.
Well again it is possible they will agree to hear it and maybe you prevail here.
No those were appeals courts... my error.
But back to the basic question. Does the IRS have priority over the other guy?
Yes the IRS always has priority as far as liens and judgments.
Here is reference that may help you with the appeal of the judgment.
Well this is what had me worried:
It has a lot of cases that you may need in your appeal here.
The filing of a notice5 publicly announcing the existence of the federal tax lien is not required; the lien itself, sometimes called the "secret lien" exists as a matter of law, and can be perfected even without the filing of a notice. However, filing has significance in establishing the IRS's priority against other claimants to the taxpayer's property, such as a purchaser, the holder of a security interest or mechanic's lien, or a judgment creditor.6
6. IRC 6323(a).
The IRS lien is the one that should really scare you long term.They can attach it to any property in your name and even garnish wages.
The judgment here in Texas is way much harder to collect.You picked a great state to relocate too.It may be hot but way more debtor friendly.
You would want to go cash only here, keeping minimal assets in the bank as well as property.All you can do is try to continue to look as poor on paper as you can.
You can also appeal and see how that goes.
Didn't relocate... family has been here since as a Republic in 1836
Then you are used to the summers by now.But it is real hard for a debtor to collect such a judgment even if they prevail.And you can make it harder by keeping your account to a minimal amount.
The creditor and IRS often use credit bureau to do asset search.
When I worked for the state we did too to see if anyone had assets they had not reported.
So overall keep your accounts low or in another name and social to look as poor as possible.
Problem is I have a small Internet company in 217 countries and payments are made by CCards. However, the IRS reviewed that too and I guess thought it was of no value because it takes more effort from me to run it.
BTW: I am 75 and just supporting myself with the little company and SS
Keep as little as possible in any accounts in your name.Bank levy can be a real beast.You are notified after the fact and it can cause real problems if they clean out an account.As long as you know that you should be fine.
I would definitely keep your social security checks in a separate account.
Should I clean it daily, hourly, weekly, monthly...??
That way it is black and white that this is what these funds are.And draw them out as soon as you can and keep balance down .
Yes, I 2 accounts: 1 for the company and another for the SS
So the IRS levy has them blocked.... that's what I had thought all along.
Any funds in your name are at risk.There is no way to know until after the levy.I have done debt collection.Often we got lucky.I had a debtor that sent his son a graduation check, we levied his account, he got notice after the fact and lots of bounced checks.
Yes the IRS would be ahead.
Thanks for letting me help you today.Good luck on the appeal and surviving the summer.
If you can leave a positive rating it is much appreciated.
Okay... I think that's what I was looking for. But, my TX research was showing a predate was superior to the IRS later date. Thus, my need for help.
You are welcome.I appreciate the chance to help you today.
Here is reference to your exemptions.
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I also am sending you the appellate rules for Texas, good luck here.
No problem, the best to you.
Where do I do the rating?
It should come on now.
I still had this one question based on our discussion of the IRS having priority over other creditors regardless of the effective date preceding that of the IRS.
Your answer was:
Can you give me a cite on that? My attorney probably knows but I meet with him tomorrow and want to be informed.
Thanks for letting me clarify here.The court may have to decide here if the judgment they entered in 2012 reinstating the judgment is prior to the IRS lien.It is not clear exactly what date is the start date here.If the judgment date predates the IRS lien then they may be ahead.It was not clear to me that when they reinstated here what actual effective date was in play.The courts in some situations here have to decide priority and battle it out.So it does depend here on which was first.In my mind here the IRS predated the reinstatement date and therefore would have priority.If there is dispute between the creditor and IRS a court would have to decide.It may come down to dates here and when the reinstatement occurred and whether the IRS lien predated it.If the IRS did then they always have priority.And if the reinstatement occurred after the IRS as I had understood your facts then they would have priority.
It's the reinstatement date here thats confusing, whether it was the earlier date or the date of reinstatement that controls.Ultimately the courts may have to go back over the facts and resolve it if there is a dispute.As you can see these things get complicated with the multiple dates as to when the effective date is on the judgment lien, the IRS date would be clear.
Again if there is dispute among the parties as there often is this matter might return to the courts for the IRS and creditor to fight it out.As long as the IRS was first here time wise then they are a superior lien.
Thanks for letting try to clarify this issue for you.I am so sorry if this was not clear before.Good luck here.
Here is reference..see the section on..
Thanks, Ray. That did have me confused because my earlier research did show the dates to be important in deciding priority.
This is now in accord with my understanding.
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