IRS Property Seizures
If you neglect or refuse to pay a tax bill that you owe to the Internal Revenue Service (IRS), it can seize and sell your property to satisfy the debt. Examples of your personal property that the IRS can take ownership of include:
- Your home
- Your car
- 401(k) accounts
- Individual Retirement Account
- Any liquid asset
- Stock holdings
- Business equipment
- Rental or business property
- Boats and other watercraft
- Rental income or royalties
The above is not an all-inclusive list. The IRS can actually seize any property or money that you have an interest in to satisfy your outstanding tax debt. The money or property does not have to be in your personal possession in order to be subject to a property seizure. For example, your employer and a bank each manage your 401(k) retirement account, but the IRS can order them to turn the funds over if all attempts at getting you to pay your tax bill have failed.
You don’t have to face the IRS alone. Hiring our agency provides you with our agency’s unique firsthand experience since most of our employees previously worked as IRS agents. Because we know how the system works from the inside, our Enrolled Agents can achieve an agreement that can allow you to continue living your life, while also gratifying the government.
The Property Seizure Process
The IRS must follow a three-step process before it can legally seize your personal property. The first step is for the agency to send you a Notice of Demand for Payment letter. This notifies you of the tax assessment, as well as the date by which the IRS expects full payment. Many people panic at this stage because they don’t have the money to pay the IRS in full. This causes them to ignore the situation, which only makes it worse.
The second step in the property seizure process is when you refuse to pay the amount the IRS says you owe. It’s important to understand that the IRS views ignoring the debt the same as an outright refusal to pay. Lastly, the IRS will issue a Final Notice of Intent to Levy and Notice of Your Right to a Hearing. As with other types of IRS communication, you may receive the notice personally by registered or certified mail. It could come to either your home or your work address. If the IRS does not know your current address, it will send the notice to your last known address. In the eyes of the IRS, not receiving the notice is not a sufficient excuse not to pay your tax debt.
If you decide to attend a hearing, you can elect to have an Enrolled Agent from Yarborough Professional IRS Debt Solutions represent you. It’s possible to argue that the IRS assessed your tax incorrectly, that paying it may cause a hardship, or that you have already paid the amount demanded of you. In this situation, having an experienced tax professional by your side can make all the difference.
Yarborough Enrolled Agents Represent You to the IRS Even Without a Hearing
It’s obviously best to work out an arrangement with the IRS before it moves to seize your property, but this isn’t always possible. Many people who have tried to make payment arrangements still can’t afford to pay what the IRS is demanding of them. The benefit of working with Yarborough is that the majority of our Enrolled Agents formerly worked for the IRS. They know how the system works from the inside. This enables them to approach the IRS with an offer that is more equitable to you.
The IRS doesn’t necessarily like to settle or make payment arrangements as an unwilling lender, but it will likely accept a reasonable offer. However, your definition of reasonable and their definition are different. Don’t let the IRS bully you into a payment you can’t afford. Allow us to put our years of experience – both working these types of cases and as former federal agents – to work for you so you can stop living with the stress and apprehension of a pending property seizure. We welcome you to contact our office today to request a free review of your tax situation.