Owing the IRS money can result in many consequences, including losing assets to an IRS seizure. No one wants to lose their home, vehicle, bank accounts, or other assets due to a dispute regarding unpaid back taxes. It is important to understand how to protect your assets from IRS seizure if you are struggling with back tax debt. Here are some tips that we can provide from our experience as tax attorneys regarding asset seizure.
Understand the IRS Seizure ProcessThe IRS will not seize your property overnight. You will be warned and have the opportunity to appeal the decision or pay the back taxes due before your assets are levied. You will receive a “Notice of Demand for Payment” as the first step of the asset seizure process. If you have received this notice and do not pay the amount requested in the time frame given, the IRS will move forward in trying to obtain your assets for payment.
If you do not pay the amount demanded, you will receive a “Final Notice of Intent to Levy and Notice to Your Right to a Hearing”. This gives you 30 days to request a Collection Due Process hearing and have your case heard by a “Settlement Officer.” When you are granted a hearing, this is an opportunity to ask for exemption of your assets from seizure.
Establishing Your DefenseSince this may be the last chance to protect your assets from seizure, it is important to have legal representation for this hearing. Our team at Brager Tax Law Group can help prepare you for your hearing and advise you on the best way to protect your bank accounts, wages, home and other property from seizure. Creating a good defense and setting a plan in place to stop the levy is essential to protect your assets from seizure. Once a IRS levy is in place, it is difficult to have it removed, making this Collection Due Process hearing your best chance for stopping the IRS from freezing your accounts and taking your property.
There are several lines of defense against asset seizure. In some cases, a spouse may be responsible for the tax debt, which can be brought to the IRS’s attention at the hearing. This is also an opportunity to dispute the debt owed. If the debt is legitimate, we can still help you find a solution. A settlement or payment plan can be options to stop the levy or put it on hold. We can also petition to have certain assets listed as exempt to keep them from seizure.
Don’t let the IRS seize your assets without a fight. Call our team at Brager Tax Law Group as soon as you receive your notice from the IRS for demand of payment. We can help you fight an asset seizure and find a solution to your tax debt problem. You can call our office at 1.800.380.8295 to set up a consultation at our Los Angles s offices. For those who are not local, we can provide a consultation via Zoom by filling out the contact form on our website.