Article by Stephanie Hoffer, Goldburn Maynard, Elizabeth Fate, Damon Kellar, Drienne Sneed, and Phillip DeSalvo
Although the Internal Revenue Service affords preseizure due process rights to the recipients of fraudulently conveyed property in a tax collection action, it does not afford similar rights to alleged nominees of the tax debtor. The sole legal difference between these groups, according to the Internal Revenue Service, is the intent of the transferor as determined by the collection agent assigned to the case. We argue that this distinction is not a meaningful determinant of the appropriate level of due process afforded to each group in the lien stage of tax collection actions and that alleged nominees must be afforded the same modicum of protection given to tax debtors and the recipients of fraudulently conveyed property. The critical inquiry, whether the Service may lien upon and later seize property in someone's possession without a preseizure review, has the same import for each group. Therefore, preseizure due process rights afforded by Congress to the recipients of fraudulently conveyed property should apply to both groups or to neither.
About the Author
Stephanie Hoffer. Visiting Assistant Professor of Law, Northwestern University School of Law. B.S. 1997, Ohio State University; J.D. 2001, Case Western University School of Law; LL.M. 2005, New York University School of Law.
Goldburn Maynard. Associate, Skadden, Arps, Slate, Meagher & Flom. B.A. 2002, Atlantic Union College; J.D. 2005, The University of Chicago; LL.M. 2007, Northwestern University School of Law.
Elizabeth Fate. Associate, KPMG L.L.P. B.A. 2002, Texas State University; J.D. 2006, St. Thomas University School of Law; LL.M. 2007, Northwestern University School of Law.
Damon Kellar. Associate, McDermott Will & Emery. B.S. 2004, Christian Brothers University; J.D. 2007, University of Arkansas Little Rock Bowen School of Law; LL.M. 2007, Northwestern University School of Law.
Drienne Sneed. Transaction Tax Professional, Ernst & Young L.L.P. B.B.A. 2002, M. Acc. 2003, Abilene Christian University; J.D. 2006, Baylor University School of Law; LL.M. 2007, Northwestern University School of Law.
Phillip DeSalvo. Tax Consultant, Deloitte Tax L.L.P. B.A. 2001, B.A. 2001, University of Illinois at Urbana-Champaign; J.D. 2006, DePaul University College of Law; LL.M. 2007, Northwestern University School of Law.
Citation
82 Tul. L. Rev. 781 (2008)