New York Law Journal, 2nd Circuit Rejects Firm's 'Bold Attempt' to Contest IRS Levy:
A law firm partner's advances on partnership profits are subject to administrative levies imposed by the IRS, the 2nd U.S. Circuit Court of Appeals ruled Thursday.
The circuit found that the advances, or partner "draws," at personal injury firm Moskowitz, Passman & Edelman constituted "salary or wages" under § 6331(e) of the Internal Revenue Code. The firm will now have to pay the government nearly $1.5 million.
The circuit said it was unpersuaded by Moskowitz Passman's "bold attempt to evade the levies" as it also upheld a statutory fine imposed in United States v. Moskowitz, Passman & Edelman, 08-3017-cv.
