IRS Accused of Wrongly Imposing ‘Seriously Delinquent’ Label (1)

A resident of Puerto Rico sued the federal government over its alleged failure to remove an erroneous certification that she has a “seriously delinquent” tax debt, a designation that subjects her passport to potential revocation and limits her ability to travel.

Mónica Polemeni Pérez sued Sept. 5 in the US District Court for the District of Puerto Rico, arguing that the IRS wrongly held her personally liable for tax debt that her employer allegedly owed, even after the company resolved its own dispute with the agency.

Although an IRS revenue officer informed company representatives that resolving the company’s tax issue ...