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In many cases, the end of the year gives you time to step back and take stock of the last 12 months. This is when many of us take a hard look at what worked and what did not, complete performance reviews, and formulate plans for the coming year. For me, it is all of those things plus a time when I u...
Lindsay Lohan Far from Alone in Suffering IRS Woes According to New York City Tax Defense Attorney Patrick A. Mullin

NEW YORK, Dec. 4, 2012 /PRNewswire/ -- According to media accounts, actress Lindsay Lohan has suffered the IRS seizure of all her bank accounts due to outstanding income taxes totaling approximately one-quarter of a million dollars owed for years 2009 and 2010.  "As with an increasing number of our American taxpayers, even celebrities are experiencing the pitfalls of failing to timely pay their taxes," noted veteran New York City tax attorney Patrick A. Mullin.  According to the National Taxpayer Advocate, an independent organization within the IRS, 1.1 million tax liens were filed by the IRS in fiscal year 2010, up 14% over 2009.  In contrast, only 168,000 tax liens were filed by the IRS in 1999.

Mullin noted that the best time to address delinquent tax issues is at the outset where such remedies as an installment payment plan and/or discounted payment plan, known as an "offer-in-compromise," may be available.  Usually, the IRS will not resort to filing a tax lien unless initial efforts to secure payment have not been successful.  Media reports indicate that tax liens were filed in January and February of 2012 against Ms. Lohan, with $93,701.52 owed for 2009 and $140,203.30 owed for 2010. 

Mullin further noted that where a tax debt is not satisfied following the filing of a lien, the IRS may then proceed with a levy on available taxpayer assets after giving a mandatory 30-day notice.  Here, it appears that even a $100,000.00 gift from actor Charlie Sheen, most probably taxable to him, could not stave off the levies of Ms. Lohan's bank accounts.

Mullin warns that "taxpayers, especially the self-employed, must be vigilant in meeting their tax obligations else they could suffer a fate similar to Ms. Lohan."

With law offices in New York City, Washington, D.C., and Fort Lee, New Jersey, Mr. Mullin concentrates in complex tax defense and federal criminal defense matters.  He has argued before the United States Supreme Court in a major federal criminal sentencing matter, is the recipient of numerous professional accolades and is admitted to practice in numerous federal district and circuit courts across the country.  


SOURCE Law Offices of Patrick A. Mullin

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