If you owe delinquent taxes, the IRS holds the power to seize your assets. IRS collection activities usually occur in increasingly harsh measures. First the IRS will send you a Notice and Demand for Payment (the “Notice”), and if you don’t respond, the IRS will send a Final Notice of Intent to Levy (“Final Notice”), allowing 30 days for a response. With still no response, the IRS can resort to levying your bank accounts. And then there is the seizure of your physical assets, including real estate, vehicles, tools, and equipment. Seizing assets is traditionally conducted only after you’ve ignored a tax debt for an extended period of time, if you appear unwilling to cooperate with the IRS representatives, and only after other measures to resolve your tax debt have been exhausted.
Why does the IRS seize your physical assets as a last resort? Seizing your assets consists of exactly what it sounds like – the IRS lays claim to your assets and traditionally will auction the assets for cash, which is applied toward your outstanding IRS debt. But the big-ticket items that will produce funds sufficient to clear large tax debt generally come attached with loans, such as mortgages.
Even if the assets can be successfully auctioned, with the proceeds going toward your IRS delinquent taxes, seizures are expensive and time-consuming to conduct. You want to avoid IRS seizures at all costs, not only because you don’t want the IRS picking the assets to seize, but also because all costs of the seizure and liquidation are passed onto you. If your debt is not as large as the asset’s worth, you could lose a great deal of equity in a seizure. And even if the assets are successfully auctioned, if you owe more in taxes than the amount of money obtained through the sale, you still are obligated to the IRS for the difference.
If faced with the threat of the seizure of your assets, your best bet is to consult a tax boutique, which will assess your circumstances, determine the best course of action, and represent you to the IRS. Staff at Law Offices of Christ Lee, P.C., are experienced and knowledgeable concerning the various actions necessary to forestall the seizure. We may opt to appeal the collection effort for you, or we may appear on your behalf at a collection due process hearing. We may also plead that you are an innocent spouse with regard to the debt. No matter which avenue chosen, we will ensure that your rights are observed while you seek resolution to your debt.
As a tax boutique, Law Offices of Christy Lee, P.C., will fight for your rights if you are facing a seizure of your assets by the IRS. Our staff are well informed about IRS procedures and the best methods for obtaining a fair and equitable resolution to your tax issues. Don’t let your matter become so dated that there are few remaining options to deal with your taxing situation.