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If you don’t pay your taxes, the IRS may pursue other methods to collect your balance. If you owe back taxes, fear of the Federal government coming after you may linger in the back of your mind. But there are steps you can take to protect yourself. The government has a vested interest in tax collection and the government has shown its willingness to pursue tax evaders in the past. In 2012 alone, the IRS went after close to 3 million delinquent taxpayers. Defense against IRS Asset Seizure can be scary, but with the right professional help it can be managed.
Section § 6331 of the Internal Revenue Code (Title 26) gives the IRS the authority to give notice for back taxes and to seize property and assets owned by delinquent taxpayers. Should the IRS assess your tax balance and find any payments outstanding, they will send you a Notice and Demand for Payment letter. These letters will detail the amount of tax debts you owe, how you can proceed with payments and the consequences of not paying your balance in full and in a timely fashion. One of these consequences includes the seizure of your assets and property to satisfy your outstanding tax balance. If you are a recipient of one of these letters, you should prepare an adequate defense against IRS asset seizure.
The IRS will send a total of five collection letter notices to individuals and four to businesses who owe back taxes, with each letter sent over the course of a few weeks. The first notice usually has the designation CP14, the second CP501, the third CP503 and the fourth CP504, although there are various iterations of each. The fifth and final notice with the designation CP90 or CP297 the IRS calls a Final Notice of Intent to Levy. A levy is a legal process by which the government forcibly takes property or assets to satisfy a tax debt. After receiving a Notice of Levy, you have 30 days to respond to the letter to protect against the IRS from taking your property and assets.
There are various types of property and assets that the IRS can seize and there are various steps you can take to stop the IRS from seizing these assets. If you fail to contact the IRS within 30 days of receiving a Notice of Levy, they will likely begin the seizure process. The most common forms of asset seizure are wage and bank levies. The IRS may send a 668-W Form to your employer and begin garnishing your wages until your tax debts are paid in full. Through Form 668-A, the IRS can capture assets directly from your saving, checking or credit union account. Your bank will freeze your account and any funds deposited up to the date of the levy may be turned over to the IRS.
The IRS may also seize other forms of assets and property. Some of these include:
By law, there are certain types of assets and property that are exempt from levy. Some of these include:
· Person items such as wearing apparel and furniture up to $7,700
· Educational items such as textbooks and items related to your profession up to $3,860
· Workmen’s compensation
· Child support
· Minimum exemption for wages, salary and other income
· Disability payments
· 85% of unemployment benefits
The number one way to defend against IRS asset seizure is rather simple: pay your taxes on time. But it is not so simple for all of us. Financial hardship and emergency situations can make it difficult to pay taxes on time. If you’ve received any of the five letters of notice from the IRS, including the Final Notice of Intent to Levy, the filing process may seem overwhelming. The prospect of having your house or car taken can be painful. But you do have some options and legal protections. Through a free consultation, our Tax Account Executives can begin the process of IRS asset seizure defense. We have an effective three step process to help you resolve your tax issues.
Because of the complicated nature of taxes and government bureaucracy, the best approach to IRS asset seizure defense would be to hire a professional. The IRS does allow for some exceptions under certain cases, but one incorrectly filed document or detail, without knowing the guidelines and enforcement standards can set you back months. The longer you wait, the closer you are to losing your property.
Here are some of the ways we can prevent your property from being taken:
Considering the enormous consequences of the IRS seizing your assets, it would be more beneficial to allow tax professionals with numerous awards and a proven track record to handle your case for you. CuraDebt Tax has built a name for itself in the realm of tax debt relief. Our sterling reputation and fair flat-fee agreements have helped us gain clients nationwide. Together we can help you build a strong defense against IRS property and asset seizure, while also helping you with numerous other tax related issues. Under the umbrella of CuraDebt Tax, you will find the solution to any and all tax related problems, including:
Contact us at 877-999-0486 for a free tax consultation.