ERHC Energy Inc (ERHE)

[kobiashi2000]

Any idea what the difference is between a lien and a levy? Until the IRS issues a levy notice, they have no intention to seize any of ERHC's property. All the lien does is put future creditors on notice of the IRS's secure interest in ERHC's assets. This is just normal procedure for the IRS when someone doesn't pay the initial bill, but until a levy is issued there are no concerns about the IRS seizing ERHC's assets. Further, ERHC's tax attorneys are more likely than not engaged in settlement discussions with the IRS, and considering ERHC's current financial situation and the extreme difficulty the IRS will have of seizing and selling foreign oil concessions, the IRS will settle for a lump sum considerably less than the $2.7 million liability. Additionally, it's quite possible that an outside accounting firm or law firm advised ERHC on the 2006-2008 transactions that led to this liability, in which case ERHC could sue to get back whatever they end up paying to the IRS. Anyways, March drilling will occur, now if tomorrow we see the IRS issue a levy notice, then of course, it's time to panic, but that's not going to happen, ERHC and the IRS will be engaged in settlement discussions for quite sometime, well past any drilling in Kenya.