Legal Question in Tax Law in Massachusetts
Insurance Intercept Program & State Income Tax Liability
If a person has an income tax liability owed to the State, and that tax liability is tied up in litigation before the Appellate Tax Board, can the State Dept. of Revenut still intercept/confiscate the proceeds of an accident insurance settlement? In general, the DOR does not conduct involuntary collection activities while a matter is in litigation. Should'nt this also prevent them from levying upon such an insurance settlement as well?
Asked on 2/08/07, 4:11 pm
1 Answer from Attorneys
Martin Hancock
MARTIN HANCOCK
Re: Insurance Intercept Program & State Income Tax Liability
Yes, the DOR has the authority to collect taxes while in litigation. After you win your case, you then file for a refund.
Answered on 2/09/07, 10:26 am