Tax Disputes: The IRS Has the City of Brighton, Alabama in Their Sights

We’ve written plenty recently about the challenges taxpayers face while dealing with an IRS dispute. Today, we’re going to cover a situation that you don’t see every day. Recently, the city of Brighton, Alabama, discovered first-hand what many taxpayers experience when they had a levy placed on their bank account due to a tax dispute. reports:

The Internal Revenue Service has given the city of Brighton 30 days to come up with a plan to pay back about $800,000 in unpaid federal payroll taxes, interest and penalties.

These were the primary outcomes of a meeting held December 19 in Birmingham between the IRS and Brighton city officials, according to Mayor Barbara Watkins.

The meeting was held to discuss a way forward for the cash-poor West Jefferson community after the agency placed a levy, or hold, on its bank account Monday.

“We have 30 days to come up with a definite plan, so if we renege on this plan, we will be right back where we started,” said Watkins, who took office in November and inherited significant financial problems. “(The IRS) said, ‘We understand your situation, and we want to work with you, but you must work with us and do exactly what we tell you to do.’”

Beginning January 1, the city will also be expected to promptly pay new taxes owed, in addition to making good on the old debt.

Watkins described the IRS hold on Brighton’s account as “a one-time levy” and said she was told that the city will be allowed to use any additional revenues that continue to come in.

The IRS certainly is consistent—at least in their willingness to take on anyone or anything that owes them money. The IRS has made life miserable for millions of taxpayers over the years, subjecting them to phone calls, threatening letters, and even in-person visits from aggressive IRS agents. And now, they’re employing the same tactics against an entire town. They’ve shown a willingness to virtually shut the town down by placing a levy on their bank account—making it impossible for the town to pay their bills or even issues paychecks for their employees.

Too many taxpayers know exactly how this feels. If you’re facing such a situation, we can help.

Too many taxpayers continue to battle the IRS on their own, and as a result may end up in a helpless spiral of taxes, penalties, and interest. The IRS is concerned with collecting revenue, not with the well-being of the taxpayers they deal with each day. And they’ve got an army of lawyers and agents lined up against you. Don’t choose to do battle against them without help. The tax code today is impossibly complicated, and it’s important that you have experienced representation on your side.

Let us get the IRS off your back so that you can enjoy the rest of the holiday season… and a pleasant, stress free 2013!

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