Important Steps for Successful Judgment Enforcement

Judgment enforcement is the most essential step inof the taxpayer, it is likely that the United States
division's work which requires perseverance,Attorney has already exhausted its judgment
imagination and skills in using post judgment discovery,enforcement efforts. The determination of
judicial sale procedures, the Federal Debt Collectionuncollectibility need to be made as of the time the
Procedures Act (FDCPA), and state judgmentjudgment enforcement is obtained. In some cases,
enforcement laws. The Tax Division Judgmentjudgment enforcement was not available to the IRS or
Collection Manual sets Tax Division's collection policieswas not exhausted by the United States Attorney. In
which explain the laws authorizing judgmenttrust fund recovery penalty refund suits and other
enforcement & furnishes advice for collecting taxpartial-payment refund cases involving divisible
judgments. The legal discussions and suggestions areassessments in which we file counterclaims, the IRS is
merely to serve as judgment enforcement guide. Thisgenerally required to defer collection during the
manual and forms included with it are not for creatingpendency of the litigation. The United States Attorney
or recognizing any legal enforceable right in anymay not have worked these cases thoroughly from a
person.judgment enforcement standpoint, and many of the
Some of the important steps for successful Judgmentcases may have substantial judgment enforcement
Enforcement are timeliness, referral or retention, usingpotential. And, if initial investigation reveals judgment
paralegals and reporting activities. Judgmentenforcement potential, a case should be retained by
enforcement needs to be pursued promptly, uniformlythe Tax Division. Successful judgment enforcement
and fairly. If there is any delay then it will greatlyneed substantial amounts of the trial attorney's time,
reduces the likelihood of judgment enforcement. Afterbut they should seek the assistance of a paralegal for
entry of judgment, the trial attorney should completesome of the more routine judgment enforcement
judgment enforcement efforts within nine months.tasks, such as initial demand letters and initial judgment
Judgment enforcement of amounts should beenforcement interrogatories.
monitored closely but if default occurs then theIt is essential that attorneys and paralegals accurately
judgment enforcement action should be takenand promptly report their judgment enforcement
promptly.& activities on the Division's automated case
Once the initial judgment enforcement efforts havemanagement system. Additionally, paralegal and
been completed then the trial attorney and sectionattorney time spent on judgment enforcement matters
chief should decide whether to retain the case or refershould be reported on TaxDoc time reports as
it to the United States Attorney. While making the“judgment enforcement Activities" for the
decision an attorney should consider whether thedesignated case which will be helpful for division
United States Attorney or IRS has already attemptedmanagement to track both the status of outstanding
to effect judgment enforcement. If the IRS hasjudgments and the amount of attorney & time
referred a suit to reduce assessments to judgmentdevoted to judgment enforcement by paralegal.
& to foreclose the tax liens on identified property