IRS Asset Seizure Defense: How You can Protect Yourself from the IRS
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.
What the IRS Does Before Seizing Your Assets
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.
What Types of Property Are Subject to IRS Seizure?
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:
- Social security benefits
- OPM Retirement Benefits
- Contractor or vendor payments owed to you
- Commissions owed to you
- Your business
- Various forms of property such as houses, including your personal residence, commercial and business property, vehicles, boats, etc.
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
How You Can Stop the IRS from Taking Your Property
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.
- Step One: If you require it, we will request an immediate stay of enforcement with the relevant authority. We’ll also complete a detailed analysis of your financial and tax situation, find which rules and regulations do and do not apply and provide you with a final recommended solution.
- Step Two: We will ensure that any of your missing tax returns meet compliance with the IRS. It is important to maintain compliant with IRS rules and regulations and ensure that future returns are in good standing. Even when filing missing or corrected returns, some taxpayers can receive a refund due to overpaid taxes.
- Step Three: The recommended solution is put into place to resolve your issue.
What are the Possible Solutions to Put a Stop on IRS Asset Seizure
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:
- We can negotiate an Installment Agreement with the IRS if you are not able to pay your tax in full. This provides you the opportunity to settle your tax debt in smaller amounts each month. A Partial Payment Plan agreement would be best where the amount is paid monthly and due to the statute of limitations for collections, the debt expires. Other installment agreement options are Streamline Installment Agreement (SIA), Complex Installment Agreement (CIA) and Staggered Installment Agreement (SIA). It is important for a professional to help determine which one is best to make sure you get the best resolution to your unique financial situation.
- If you are experiencing financial difficulty such as economic or personal hardship where expenses exceed income, you may be eligible for Currently Non Collectible status. The IRS will stop all attempts to collect your tax debt temporarily.
- Under special circumstances, you may qualify for an Offer in Compromise agreement with the IRS which lets you resolve your tax liability to a reduced, smaller amount in one full payment.
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:
- Levy and Seizure Defense
- Tax Levy Release
- Tax Lien Release
- Wage Garnishment Release
- Payroll Tax Resolution
- File Unfiled Tax Returns
- Amend Prior Returns
- Income Tax Preparation
- Tax Audit Defense
- IRS Asset Seizure Defense
- Tax Penalty Abatement
- Offer In Compromise
- Installment Agreement
- Fresh Start Program
- Innocent Spouse Relief
- Currently Not Collectible
- Interest Abatement
- Custom Tax Solutions
Contact us at 877-999-0486 for a free tax consultation.