When IRS Can Collect Taxes From You Owed By Someone Else

It seems bad enough that you have to pay your own taxes, let alone someone else's. But it can happen. The IRS sometimes comes after one taxpayer to collect the tax liability of someone else. How is this possible, you might wonder? The answer is "transferee liability," a concept embodied in Section 6901 of the tax code. Actually, the concept has deep roots in legal history. In fact, it is a creditor protection device going back hundreds of years. Essentially, the IRS can pursue a "transferee"—someone who received assets or money for less than full and fair value from the taxpayer. You might think of it as kind of a stolen property rule.

Read More: https://www.forbes.com/sites/robertwood/2017/09/25/when-irs-can-collect-taxes-from-you-owed-by-someone-else/#6db4dca97c07

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