Unfortunately, the IRS can seize your assets if you don't pay your taxes. There are only a few types of assets that cannot be seized. The IRS cannot confiscate real estate and your car cannot be impounded if you used it to get to and from work. Nor can you confiscate the money you need for basic living expenses.
Paying taxes is a significant and often complicated responsibility. If a taxpayer is not properly meeting their tax obligations, the Internal Revenue Service (IRS) can take several steps. In some situations, the IRS may even confiscate some of the taxpayer's personal assets and property to settle their tax debt. If the IRS has contacted you regarding a tax liabilities concern, you should talk to an experienced tax lawyer to get the legal guidance and help you need.
Many people don't realize that the federal government can confiscate some of a person's assets if they don't pay their taxes. If you have an unresolved tax debt, the IRS may eventually use a garnishment to collect the back tax. Before the IRS issues a garnishment, it will send you a “Notice and a demand for payment.”. If you don't respond, you will receive a “final notice of intent to collect” and a notification of your right to a hearing.
If you haven't yet resolved the debt or reach an agreement with the IRS to settle it, the IRS may be allowed to take possession of your property. The results listed are not a guarantee of future results. Using the Internet or this form to communicate with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or urgent information should not be sent through this form.
The IRS often seizes vehicles, including cars, trucks, boats, recreational vehicles, and motorcycles. They will accept fine jewelry, especially if it contains gold, silver, or other precious metals that are easy to sell. Holiday homes and second homes are also at stake. If you can prove to the IRS that the asset they are trying to seize would not be worth seizing, then the item can be declared exempt and the IRS will no longer pursue it.
Usually, you'll have to show that the effort that would be needed to sell the asset would actually cost more than the asset would eventually sell. You can also request that an asset be declared exempt if you can demonstrate that the asset will prevent you from working. Many times, the IRS may try to confiscate assets such as cars, trucks, tractors, etc., that may be needed for you to do your job and earn money. If you can show the IRS collector that this asset is needed to make money, you can likely get an exemption on that asset.
The IRS can garnish (garnish) assets such as salaries, bank accounts, Social Security benefits, and retirement income. The IRS can also confiscate your property (including your car, boat, or real estate) and sell it to settle the tax debt. In addition, any future federal tax refunds or state income tax refunds due to you can be seized and applied to your federal tax liability. The IRS could garnish your bank accounts, part of your salary, accounts receivable, dividends, income from rental properties, retirement accounts, business assets and more.
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. When you owe large amounts of money to the IRS and have significant tax debt, your income and financial assets are at risk of being impounded by the IRS. In most cases, working with a specialized tax lawyer will be the first and most important step you can take if you are under threat of asset seizure. However, before you panic, it's a little comforting to know that the seizure of residential property isn't a tactic the agency resorts to frequently.
The short answer is yes, the IRS, in fact, has the legal right to confiscate a taxpayer's personal residence if taxes are overdue. If you find yourself on the wrong side of the IRS, they can garnish your salary, close your business and seize your assets. You are not required to report all your assets and location to the IRS if they don't ask you. If the IRS has notified you of its intention to seize your assets, you should speak to a lawyer specializing in tax law as soon as possible.
Keep in mind that the IRS will search public records and try to find any assets it knows you have. This will put an end to asset seizures and give us an opportunity to get to the bottom of your situation and find a solution that works for all parties. . .