He says legal notices have been sent to Ms Obaid-Chinoy and a fellow producer, Daniel Junge.

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"We agree that it is imperative for both legal and taxpayer rights purposes to timely issue lien notices, " the IRS response says.

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Protesters at Hay Hill were given notices on Monday stating if they refuse to leave they face a legal hearing on 20 February.

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Lohan will need to deal with the tax notices, but her biggest tax problem may be how to deduct all her legal fees.

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