IRS Faces Suit Alleging Wrongful Levy of Texas Rental Property

A Texas business owner alleged the IRS wrongfully liquidated his interest in his company by levying its only asset to satisfy his partner’s tax liability, according to a federal lawsuit filed.

The US seized and liquidated a Denton, Texas, property owned by Bordaire Investments LLC after it classified the company as a nominee of Melanie Adair, a Bordaire co-owner who had an $89,000 tax obligation. Property of a taxpayer’s nominee or alter ego is subject to collection to satisfy tax liability.

The company’s other member, Borna “Brad” Faizy, said that Bordaire has “never been a nominee” of Adair and that, ...