An IRS lien allows for the lawful seizure of your property to satisfy a tax debt. You can garnish wages, withdraw money from your bank or other financial account, seize and sell your vehicle (s), real estate, and other personal property. The IRS can confiscate your personal and real property, even if they are not in your physical possession. For example, if you have a boat stored at a friend's house, the IRS can keep it.
Asset seizure is the strongest tool in the IRS collection arsenal. Under Internal Revenue Code 6331, if a taxpayer refuses to pay any tax due ten days after the issuance of a notice and a request for payment, the IRS can collect the tax by seizing the taxpayer's property. By virtue of this power, the IRS can confiscate assets such as vehicles, jewelry, works of art, real estate, and even a personal residence. No action could cause more trauma than being forced to leave your personal residence to pay unpaid taxes.
In addition to a number of required investigative steps that must be completed to determine the appropriateness of the seizure, there are a litany of forms that must be completed before management reviews the appropriateness of the proposed action. While its seizure powers are extensive, the IRS cannot legally claim the properties and sources of income that you need for your family's survival. If the IRS has requested the voluntary sale of an asset to avoid foreclosure, don't delay in contacting a tax professional who can work directly with the IRS to propose viable alternative resolution options or present legal arguments in favor of a legal exemption for the property you intend to seize. The IRS (Internal Revenue Service) won't seize your assets without notice or without a valid reason, so if you can resolve your tax issues now, you can prevent things from getting out of hand.
In general, any asset that is not essential to your survival and shelter (and that of your family) can be garnished to pay the IRS what you owe. When you commit gross negligence in paying your tax debt to the IRS, you put your income and assets at risk of being garnished. If you're concerned about protecting your assets from the IRS, it's best to consult with a qualified tax expert. Omni Tax Help specializes in helping taxpayers resolve their accounts on time while keeping their income and assets safe.
At the due process collection hearing, you present your arguments to explain why the IRS should not seize your assets. The federal tax lien guarantees IRS interest on your property and other assets when you have a tax bill. While you technically have the right to seize sources of income such as unemployment benefits and social assistance payments, you will normally avoid doing so if these payments are your only source of income. The best way to avoid having your assets garnished and your wages garnished is to file your taxes and pay what you owe on time each year.
Even if you manage to reach a payment agreement with the IRS, the IRS may still impose a federal tax levy, but the IRS is less likely to collect and seize your assets. After the IRS files a lien and before it begins to initiate a garnishment action, in which the IRS will collect and seize assets and assets, you will have the opportunity to request a hearing with the Office of Appeals. Personal and real property, vehicles, ships, salaries, retirement accounts, tax refunds, and rental income are potentially subject to seizure by the IRS.
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