IRS Can Foreclose on Co-owned Dental Practice

A dentist in New Jersey who was significantly delinquent in his federal taxes co-owned his practice with another dentist under an LLC; the physical office suite was co-owned as tenants in common. The government sought a forced sale of both the entire practice and the office, and a federal district court said yes. Even though the other dentist didn’t owe any taxes, the Tax Code gives the government the authority to foreclose on the entire property and not merely on the delinquent taxpayer’s own interest. #IdeaoftheDay