Understanding IRS Seizures

If you owe money to the Internal Revenue Service (IRS), you can be certain that it will take every possible measure to obtain it. This includes placing a levy on your bank accounts or seizing your property to be sold at a public auction. When the IRS intends to pursue these methods of collection, it must notify you via a Notice of Seizure. This is mandated under Code 6331 of the United States Tax Code. Rules governing the seizure and sale of your personal items can be found under United States Tax Code 6335.

What the IRS May Take in a Seizure

The IRS can seize anything from you that it deems to have sufficient value. However, it will not bother to take something for which you own only a small percentage. As an example, suppose you have a truck that it worth $25,000, but you have only made a few payment on it. This would be of no value to the IRS, because the vehicle is owned primarily by the bank that is financing it. The same situation holds true for your primary place of residence.

Now, if you own a cabin or a luxury car, the IRS would be very interested in taking ownership of those items and selling them to collects its money. Typically, the IRS places a tax lien on your house, car or other valuables rather than seizing it outright. This ensures that the IRS will collect money when you sell the item.

What to Do if You Have Received a Notice of Seizure

You have the right to hire a lawyer to help you understand the seizure process and form an appeal. Since IRS laws can be complex and difficult for the average person to figure out, it is in your best interest to hire an experienced attorney if you stand to lose a significant amount of money in a tax seizure. Many people make the mistake of panicking when faced with an IRS seizure notice, which is understandable but not especially helpful. You may have more rights than you realize, but it is entirely up to you to pursue them.

If You Don’t Want to Hire an Attorney

If you feel you do not owe what the IRS is demanding of you and don’t have the money or desire to hire an attorney, you can file a tax lien dispute using Form 6323. If you don’t dispute that you owe the money, but would prefer not to have a tax lien placed on you, you should file Form 911 with the IRS to request a payment plan. The IRS is not required to accept a payment plan, but you have the right of appeal if your request is denied.

Peter Wendt is a writer and researcher specializing about Philadelphia bankruptcy lawyer. For readers who are interested in learning more about this subject, Peter recommends they check out GetFreeOfBills.com.