Case: Suit Against IRS for Failure to Release Tax Lien Does Not Survive Death (E.D. Wis.) (IRC §7432)

Suit against the IRS for unauthorized collection does not survive the taxpayer’s death, a district court held. The government commenced a collection suit against Taxpayers, seeking a judgment for Taxpayer husband’s unpaid, assessed federal tax liabilities. Taxpayers filed bankruptcy and during the case Taxpayers allege that the IRS failed to release a tax lien. Taxpayer husband died after commencement of the case. Because the tax lien was against Taxpayer husband’s pension, the court held that a suit under tax code Section 7432 does not survive the death of the taxpayer because the statute uses the phrase “such taxpayer.” The court ...