Tax Lien Filed Against Maryland Unemployment Offices

According to an article in today’s Baltimore Sun, the Internal Revenue Service filed a tax lien in October against the property of the Maryland Unemployment Office.

Court records indicate that the tax lien is based on a back tax assessment made by the IRS for about $85,000. The lien, formally filed against the Maryland Department of Labor, Licensing and Regulation’s Office of Unemployment Insurance, was filed as a means in which to catch the attention of the department, and to see to it that the debt is paid. The Department of Labor, though, filed an appeal back in August, stating that it does not owe the taxes that the IRS has billed.

Dennis Morton, the unemployment office’s director of contributions, said that this recent filing after their appeal is a timing issue, and that the department fully expects the issue to be resolved. This isn’t the first time the office has faced improper back tax assessments, he said. He did remark that this is the first time that a tax lien has been filed as a result of the tax discrepancy.

As a result of unemployment benefits being classified as taxable income, the Department of Labor follows suit with most employers in the United States and offers tax withholding for its clients.

The taxes that are withheld are systematically transferred to the Internal Revenue Service by the “Electronic Federal Tax Deposit. According to Morton, the way the department’s accounting system and the IRS’ electronic payment system are set up, there is a possibility for delay and subsequent determinations of delinquency.

Morton notes that the withholding and transmittal service used by the Agency was provided by the U.S. Department of Treasury.

If you find that you have been improperly assessed a tax liability, it is in your best interest to contact your competent and knowledgeable tax attorney as soon as possible. Penalties and interest will accrue as time passes, leaving you with a more complicated, and more expensive tax issue on your hands.


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