How to Prevent a Tax Seizure

Preventing a Tax SeizureHow to Prevent a Tax Seizure

If you refuse, ignore or fail to pay your federal income taxes, the Internal Revenue Service has the legal right to seize your property. Property levies are the most severe action taken by the IRS.

In case you are behind on the tax debt, you should understand how tax seizures work and how you can avoid them.

Types of Property IRS Can Seize

The IRS has the right to seize your real estate and personal property, even if they are not in your physical possession. The IRS may also take your wages, rent from your tenants, payments from your clients, funds in your bank account, and even your retirement funds. In essence, the IRS could take nearly anything you own, which includes your home.

Property the IRS Can’t Sieze

  • Minimum exemption for salaries as well as other income
  • Worker’s Compensation
  • Unemployment benefits
  • Income for child support payments which are court ordered
  • Certain pension and annuity payments
  • Certain disability payments
  • “Job Training Partnership Act” assistance

Stopping the Tax Seizure on Your Tax Refund, Wages, or Bank Account

In case the IRS garnishes or levies your wages, it will continue until you pay your debt in full or the Internal Revenue Service decides to release your levy. Keep in mind that during this period, the agency will also seize all your tax refunds and then apply them to the tax debt. To stop your wage garnishment, you have to pay your tax debt, or you can enter into some legal arrangement with the IRS.

It is crucial that you work with an experienced tax professional to handle this sensitive matter. On the other hand, in case the IRS decides to levy the bank account, your bank will freeze your funds for up to 21 days. Then, your bank will send the funds to the IRS. If you want to stop this levy, you have to set up a resolution or an agreement with the IRS during your 21-day standard holding period.

Get Help To Stop a Tax Seizure

If you get a legal notice of intent to seize, you must contact the IRS immediately or get in touch with an experienced tax professional, such as Ayar Law to handle this problem on your behalf.

It is always a good idea to timely respond to the agency’s notice by requesting a standard CDP hearing as well. In case you miss your thirty-day window for filing the appeal, you may end up losing your right to a hearing. This reason is why you should call a reliable tax professional such as Ayar Law so you could get the help you need to prepare.

Venar Ayar, Esq.

Venar Ayar, Esq.

Attorney-at-Law, Master of Laws in Taxation
Principal and founder, Ayar Law

Venar is an award-winning tax attorney ranked as a Top Lawyer in the field of Tax Law. Mr. Ayar has a Master of Laws in Taxation – the highest degree available in tax, held by only a small number of the country’s attorneys.