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How to Stop an IRS Seizure of Assets

Monday, October 31, 2011
People who cannot pay their tax debts to the Internal Revenue Service (IRS) need to make a voluntary effort to contact them to work out an installment agreement or another way to get back in compliance with their federal taxes. Failing to do so can result in an IRS seizure of assets. An IRS seizure of assets is where the IRS will legally take any assets you have to pay your tax liabilities to get you in compliance with the federal tax laws. The IRS is not like any other collector out there, and they have more power to take what they want when collecting tax money. If you do not arrange a payment option with the IRS, they will issue an IRS seizure of assets on your valuables. The IRS can issue an IRS seizure of assets for nearly any asset you own, including your property. However, there are taxpayers’ rights that discourage the Internal Revenue Service from issuing an IRS seizure of assets to collect a person’s primary residence to pay for their taxes. However, they are more likely to seize your second home or rental property if you owe a large amount of money to the IRS. If you have an IRS seizure of assets notice, you need to contact a tax attorney or tax professional to help you deal with the IRS. Tax laws consider income and wages an asset. The IRS normally issues a tax levy on your bank account to pay your tax debts. They can also issue the IRS seizure of assets out of your employment check, Social Security benefits, or retirement and pension benefits. The only way to stop this from happening is to work out a plan with the IRS to pay off your tax liabilities. Otherwise, they will take any money you have to pay off your tax debts. The IRS can also take stocks and bonds, bank accounts, and personal property during an IRS seizure of assets. If the IRS takes your property, they will sell it and use the proceeds to pay off your debt. IRS Seizure of Assets Process The IRS will file a Notice of Federal Tax Lien to place on your property. If you sell the property, the IRS will get the money to pay back the tax debts you owe. This is important when you are filing for bankruptcy, since they are a creditor looking to collect a debt. Another tool the IRS uses to collect money is a Notice of Levy. They send this notice to your financial institution to freeze all the money in your bank account(s). They send these notices to you to get you on the phone to work out a payment arrangement or settlement before they forcefully take your money. Once you receive a Notice of Levy, you have 30 days to arrange an installment agreement with the IRS to stop the IRS seizure of assets process on your property or bank account(s). If you do not take any action, the IRS will freeze your account. The bank is legally obligated to send them your money after 21 days. People who have their accounts frozen need to talk to a tax attorney to work out a payment arrangement with the IRS to release your money. IRS Resources – Bank Levy Do you need information about bank levies? Read what the IRS says about a bank levy. Read about the differences between a bank levy and a federal tax lien. For more information, search about the bank levy procedure in Wikipedia. You can also read what your state has to say about tax levies by using your state and bank levy as keywords to search Google. You can also search the local Beverly Hills Bar Association.