Asset Seizure

Asset seizure allows the IRS to directly take your personal property to satisfy a tax liability. After the assets are seized, they are sold to reduce the outstanding tax debt.

The US Constitution, on unreasonable searches and seizes, does not apply to IRS levies.  The IRS is not required to go to court prior to issuing a bank levy and seizing property.

IRS Bank Levy

However the IRS must fulfill the following requirement before it can seize most property:

  • The tax must have been assessed
  • A Notice of Assessment has been sent to the taxpayer
  • It must demanded payment of the taxes owed
  • The taxpayer must have neglected or refused to pay the assessed tax  within 30 days after the notice and demand were sent

Assets Subject to IRS Seizure:

  • Cars, boats, airplanes, and luxury vehicles
  • Cash value life insurance
  • Accounts Receivable
  • Stocks and bonds
  • Your home and other real estate you own
  • IRAs, Keogh, and other retirement accounts
  • Pension or profit-sharing plans
  • State income tax refunds
  • Securities, contracts and promissory notes
  • Dividends and rental income
  • Licenses and franchises
  • Pending inheritances

Typically, asset seizure occurs only after your IRS case has been assigned to a Revenue Officer.

Assets Exempt from IRS Seizure:

  • Certain clothing (does not include mink coats or other luxury couture)
  • Fuel, provisions, furnishings, and personal effects worth up to $7,430 in total
  • Tools of your trade and books up to $3,710
  • Books for school
  • Benefits for unemployed individuals
  • Worker's Compensation payouts
  • Certain funds received as public assistance
  • Benefits from job training
  • Child support as ruled by the court (if the judgment is dated prior to the levy)
  • Certain deposits made to the Special Treasury fund by members of the Armed Forces and Public Health Service employees
  • Some disability payments
  • Minimum exemption amount of wages, salary and other income
  • Welfare or SSI payments

You Need Qualified Representation

Instant Tax Solutions can represent you in IRS negotiations to have the levy released from your assets.  We have been very successful in gaining favorable results allowing taxpayers to retain their personal property.

If you have received an IRS notice of intent to levy, Instant Tax Solutions may be able to prevent the levy from taking place and avoid future collection action.