The IRS can generally seize your assets when you fail to pay your tax debt and the IRS has sent you the proper notices in the mail. Even if you owe tax debt and have received these notices, you can still protect assets if you negotiate a resolution to your tax problems.

Key Insights We Will Discuss:

Steps the IRS must take before seizing your assets.
Limitations on what the IRS can seize.
Your options for avoiding an IRS seizure.

The IRS Asset Seizure Process

The IRS needs to do the following things before seizing your assets:

First, the tax must be assessed. This can occur when you file a return or when the IRS sends you a Notice of Deficiency. Once tax is assessed, your account moves to collections.
The IRS will then send you a bill. It will state how much you owe and give you a deadline for sending payment.
Once the deadline passes, you may receive further notices demanding payment. Your balance will increase each month due to late payment penalties and interest.
Finally, the IRS must generally send you a Notice of Intent to Levy and give you 30 days to request a Collection Due Process (CDP) hearing .
If you don’t respond within that 30-day period, the IRS can move forward with the levy and seize your bank account funds, wages, or other assets.
Read More