Receiving an IRS notice stating that the agency intends to seize your property can be frightening. A federal tax debt can put your home, vehicle, business assets, bank accounts, or other property at risk when the IRS takes collection action.
Gabaie & Associates helps individuals and business owners in Frederick respond to IRS collection actions, challenge tax liabilities, and pursue options to prevent or limit the seizure of property.
Received an IRS notice about the seizure of your property in Frederick? Call Gabaie & Associates at (410) 358-1500 or contact the firm online to discuss your situation.
What Does an IRS Intent to Seize Notice Mean?
The IRS has the authority to levy property or rights to property when a taxpayer has an unpaid federal tax liability, and the legal requirements for collection have been met.
A levy is different from a tax lien. A lien generally gives the government a legal claim against a taxpayer’s property as security for the tax debt. A levy is the actual seizure of property to satisfy the debt.
The IRS may seek to levy different types of property, depending on the circumstances. This can include bank accounts, wages, vehicles, real estate, business assets, accounts receivable, and other property or rights to property.
Can the IRS Seize My Property for Unpaid Taxes?
Yes. Federal tax law gives the IRS broad authority to collect unpaid taxes through levies against property and property rights.
The IRS may potentially levy property that belongs to you or rights you have to property held by someone else. For example, an IRS levy can reach funds in a bank account or certain payments owed to you.
The IRS generally must provide required notices and follow specific procedures before seizing property. Depending on the circumstances, you may have an opportunity to resolve the tax debt before the seizure occurs.
What Property Can the IRS Seize?
The IRS can potentially levy a wide range of property and property rights when the requirements for a federal tax levy have been met.
Depending on the circumstances, the IRS may seek to levy:
- Money in a bank or financial account
- Wages and other income
- Vehicles
- Real estate
- Business assets
- Accounts receivable
- Certain retirement or investment assets
- Other property or rights to property
Federal law also provides exemptions and limitations on certain property. The fact that an asset has value does not automatically mean the IRS can take it without regard to those rules.
Can an IRS Property Seizure Be Stopped?
In some circumstances, yes. The IRS may release or prevent a levy when the taxpayer resolves the underlying tax debt or when another legal or financial reason supports stopping the collection action.
For example, you may be able to address the tax debt through an installment agreement, an Offer in Compromise, or Currently Not Collectible status when you meet the applicable requirements.
A levy may also need to be reviewed if the tax liability has already been paid, the collection action was issued improperly, or the levy would create an economic hardship recognized under federal tax law.
What Should You Do If the IRS Plans to Seize Your Property?
If you receive an IRS notice stating that the agency intends to seize your property, review it as soon as possible. The notice should identify the tax liability involved and explain the next steps in the collection process.
Start by gathering the documents related to the tax debt, including:
- The IRS notice about the proposed seizure
- Previous IRS collection notices
- Tax returns for the years involved
- Records of payments made to the IRS
- Any existing installment agreement or other payment arrangement
- Documents showing your income, expenses, assets, and debts
- Information about the property the IRS is seeking to seize
You should also determine whether the tax balance is accurate. If you have already paid the debt, believe the IRS made an error, or have another reason to dispute the liability, gather records supporting your position.
If you cannot afford to pay the balance in full, do not assume that property seizure is unavoidable. You may have collection alternatives based on your financial circumstances.
What If You Cannot Afford to Pay the IRS?
An unpaid tax balance does not necessarily mean you have to pay the entire amount immediately. The IRS offers several options for qualifying taxpayers who cannot pay their tax debt in full.
An installment agreement may allow you to make payments over time. If you cannot currently afford to make payments without falling behind on necessary living expenses, you may qualify for Currently Not Collectible status.
In some circumstances, an Offer in Compromise may allow you to settle qualifying tax debt for less than the full amount owed. Eligibility depends on factors such as your income, expenses, assets, and ability to pay.
What If the IRS Is Trying to Seize My Home?
An IRS seizure involving your home can have serious consequences. Federal law provides certain protections and procedures for the seizure and sale of a taxpayer’s principal residence.
The IRS generally must meet additional requirements before it can seize and sell a taxpayer’s principal residence, including obtaining approval through the required process. Because of these additional protections, a notice involving your home should be reviewed carefully.
If the IRS is threatening to seize your home, do not wait until a sale is scheduled to address the tax debt. The available options depend on the amount owed, the equity in the property, your financial circumstances, and the stage of the collection process.
What If the IRS Is Trying to Seize Business Property?
A federal tax levy can also affect business owners. Depending on the circumstances, the IRS may seek property or property rights connected to a business, including bank accounts, accounts receivable, vehicles, equipment, or other assets.
A business levy can affect your ability to operate and pay employees, vendors, and other expenses. If the property is necessary for the business to continue operating, that may be an important factor when evaluating your collection options.
Business owners should also consider whether the tax debt belongs to the business, an individual owner, or both. The appropriate response can depend on the type of tax involved and who is legally responsible for the liability.
Can a Tax Attorney Help Stop an IRS Property Seizure?
A tax attorney can review the IRS notice, tax account, and circumstances surrounding the proposed seizure to determine what options may be available.
At Gabaie & Associates, assistance may include:
- Reviewing IRS collection notices and your tax account
- Determining whether the tax balance is accurate
- Reviewing the property or property rights subject to collection
- Identifying potential collection alternatives
- Negotiating an installment agreement
- Requesting Currently Not Collectible status when appropriate
- Pursuing an Offer in Compromise when you meet the requirements
- Challenging errors involving the tax liability or collection process
- Seeking the release or prevention of a levy when appropriate
- Communicating with the IRS on your behalf
The goal is to address the immediate threat to your property while working toward a solution for the underlying tax debt.
Do You Need an IRS Property Seizure Attorney in Frederick?
If you live or operate a business in Frederick and received an IRS notice stating that the agency intends to seize your property, Gabaie & Associates can review your situation and explain your options.
The firm has a Frederick office at 5100 Buckeystown Pike, Suite 250A, Frederick, MD 21704. Juda Gabaie represents taxpayers before federal and state tax authorities and is admitted to the U.S. Tax Court and Maryland Tax Court.
Whether the IRS is threatening to seize a bank account, vehicle, business asset, real estate, or another property interest, addressing the notice promptly may help you determine whether the collection action can be prevented or resolved.
Call Gabaie & Associates at (410) 358-1500 or contact the firm online to discuss your situation.
Frequently Asked Questions About IRS Property Seizures in Frederick
Can the IRS take my house for unpaid taxes?
The IRS can potentially seize a taxpayer’s property to satisfy an unpaid tax liability, but additional requirements apply when the property is a principal residence. If your home is at risk, the situation should be reviewed promptly.
Can the IRS seize my car?
A vehicle can potentially be subject to an IRS levy. Whether the IRS can seize and sell a particular vehicle depends on the circumstances, including applicable exemptions and the value of the property.
Can the IRS seize my business assets?
Potentially. Business bank accounts, accounts receivable, vehicles, equipment, and other property may be subject to federal tax collection. The type of tax debt and ownership of the assets can affect the collection process.
What happens after the IRS seizes property?
Depending on the property involved, the IRS may take possession of it and potentially sell it to satisfy the tax debt. The procedures vary depending on the type of property and applicable federal requirements.
Can I prevent an IRS property seizure?
In some cases, yes. Resolving the tax debt, establishing an appropriate payment arrangement, or demonstrating another legal or financial basis for stopping the collection action may prevent or limit a seizure.
Get Help With an IRS Property Seizure in Frederick
An IRS notice stating that the agency intends to seize your property is serious, but it does not necessarily mean you have lost the opportunity to address the tax debt.
If you believe the balance is incorrect, cannot afford to pay it, or need help protecting property that is at risk of seizure, reviewing your options promptly can help you determine what to do next.
If you received an IRS intent-to-seize notice in Frederick, call Gabaie & Associates at (410) 358-1500 or contact the firm online to discuss your situation.
