New Jersey Hospital Says Improper Tax Levy Will Cause Insolvency

A New Jersey acute care hospital says it will face insolvency if the IRS does not return Medicare reimbursement payments wrongly taken as part of a tax levy.

Columbus LTACH LLC petitioned the US Tax Court “for immediate cessation of unlawful levies and any other collection activity” from the IRS. The Newark, N.J.-based company doing business as Silver Lake Hospital says its accounts are on “currently not collectible” status. But it alleges the government has “unlawfully seized” about $907,000 in Medicare reimbursement payments as a part of tax issues that date to 2014.

The tax levy is not in the ...