Reclaiming Property Seized in an IRS Levy

If the IRS seizes your property by way of an IRS levy, it can be frightening. The entire process can be overwhelming, even if you knew it was coming. But that doesn’t mean you can’t get your property back. In some circumstances, you may be able to, but you should contact an experienced tax professional, like those at the Highland Tax Group, immediately.

 What Happens When the IRS Seizes My Property through an IRS Levy?

After the IRS levy and seizure, the IRS will sell your property and apply the proceeds to the balance you owe in taxes. Before the sale, you’ll receive the minimum bid price and have a chance to challenge the fair market value estimate. You’ll then receive notice of the sale, and the IRS will announce the sale to the public. If there’s anything left after paying what you owe the IRS and the costs of the sale, the IRS will send you a check.

 How Can I Reclaim My Seized Property?

First, you can contact the IRS, arrange to pay what you owe, and request that the IRS release the seized property. The IRS has to release your property if:

  • You’ve paid what you owe,
  • The collection period ended before the IRS seized your property,
  • Releasing your property will help you pay your taxes,
  • You’ve entered an installment agreement, and the terms prevent the IRS from seizing your property,
  • The seizure is causing economic hardship, or
  • The property is worth more than you owe, and the seizure prevents you from paying your taxes.

 After public notice of a sale of seized property, the IRS must wait ten days to sell the property. That means there’s not much time to spare.

 You Need a Tax Professional

If you’ve had property seized by the IRS or received notice of an IRS levy, it’s important to act quickly. You need to get an experienced tax professional involved. Contact Highland Tax Group to see how we can help.