Judge Says IRS Must Unfreeze Baltimore Law Firm’s $1.5 Million

A Baltimore law firm was not helping its client to hide money and, as a result, the IRS must unfreeze more than $1.5 million it seized as part of an audit of the client, a federal judge ruled.

The agency failed to prove that the firm Neuberger, Quinn, Gielen, Rubin & Gibber was acting as the alter ego of one of its clients, according to an opinion Tuesday from Magistrate Judge Erin Aslan. Therefore, Aslan ruled, the IRS shouldn’t have attempted to levy the firm’s bank account in 2022 to settle its client’s tax debt.

The IRS will now need ...