Other victims must be paid before IRS restitution collection

Plain-English summary

This Chief Counsel email concludes that the case was not governed by Westbrooks because restitution was imposed independently as part of the sentence under a plea agreement. The government was only one of multiple victims of the offense. Under the stated payment priority, the other victims had to be paid before the government. The IRS therefore could not collect the restitution-based assessment until the nongovernment victims had been paid.

Ruling snapshot

• Question: Could the IRS collect the restitution-based assessment before the other crime victims were paid?
• Outcome: Advice given: no.
• Key authorities: The plea agreement and restitution order; UILC 6201.01-06

Full text (IRS public release)

ID: CCA_2020100914392144
UILC: 6201.01-06

Number: 202118018
Release Date: 5/7/2021
From: ----------------------
Sent: Friday, October 9, 2020 2:39:21 PM
To: -----------------------
Cc: ------------------------------
Bcc:
Subject: RE: potential Westbrooks--------

This is not a Westbrooks case because restitution was imposed as an independent part
of the sentence pursuant to a plea agreement. However, the government is only one of
the victims of the crime in count -------------------------------------------. Where there are
victims other than the government, the government is only paid after the other victims
have been paid. Accordingly, the government cannot collect on the restitution-based
assessment until the non-government victims have been paid.

Please call if you have further questions on this matter.