IRS Seizure Threats

How Tax Seizures Work

The IRS may exercise its option to seize and liquidate your property after previous attempts at collecting payment have been ignored. The process generally works as follows:

• The IRS sends a Notice of Demand for Payment (i.e., a tax bill).
• If you don’t pay the bill or contact the IRS to make acceptable arrangements, the IRS may send a Final Notice of Intent to Levy and a Notice of Your Right to a Hearing.
• In most cases, you have 30 days to respond, either by making arrangements to pay or to request a hearing. If you do nothing, the IRS may then move forward with property seizure.

What Types of Property Can Be Seized by the IRS?

The IRS may seize any of a number of assets that it believes will resolve your tax debt. Examples include, but are not limited to:

• Bank accounts
• Retirement accounts
• Rental income
• Accounts receivable (i.e., payments from your clients)
• Wage garnishments
• Real estate (including the home you live in)
• Other personal property (e.g., cars, boats)

How We Can Help with IRS Seizure Threats

The most common way for us to respond to an IRS seizure threat is to submit a Request for a Collection Due Process (CDP) hearing. We will conduct a thorough review of your tax problem and financial situation to determine the best strategy for the hearing. At the hearing, we’ll present a case as to why the IRS should not attempt to seize your property. Strategies may include:

• Proving you are not liable for the debt, or that the taxes have been paid.
• Demonstrating that the IRS made a mistake in assessing what you owe.
• Demonstrating financial hardship.
• Negotiating an installment agreement as an alternative to seizure, and/or negotiating for an Offer in Compromise.

There are a wide range of options that we can utilize to help you avoid having your property seized by the IRS. If you have received a Notice of Intent to Levy, your best defense is to respond with the help of an experienced tax professional. Contact us using the form below to see how we can help.