IRS Seizures

IRS seizures are the most problematic of all actions taken by the IRS. Once the IRS is prepared to seize your property, it becomes a case of aggravation. Convincing the IRS to hold back it’s the decision to seize can be difficult, however, it is possible. First, it is helpful if the taxpayer can show the IRS that the seizure decision was inappropriate and second, the taxpayer must provide the IRS with a reasonable alternative to the tax seizure action.

Description

IRS seizures are the most problematic of all actions taken by the IRS. Once the IRS is prepared to seize your property, it becomes a case of aggravation. Convincing the IRS to hold back it’s the decision to seize can be difficult, however, it is possible. First, it is helpful if the taxpayer can show the IRS that the seizure decision was inappropriate and second, the taxpayer must provide the IRS with a reasonable alternative to the tax seizure action.
Prior to an IRS seizure:
  • IRS must verify the liability; consider alternative collection methods;
  • Confirm that the costs of the seizure are not greater than the equity realized by the seizure;
  • Realize enough equity to apply the IRS seizure proceeds to the tax liability due.
IRS is required to consider installment agreements, Offers in Compromise, Bond Postings and Levies prior to an IRS seizure.
The following is exempt from an IRS seizure: necessary wearing apparel:
  • A portion of the fuel, provisions, furniture and personal effects of the head of a family
  • A portion of the books and tools of the trade
  • Business or profession
  • Unemployment benefits
  • Undelivered and unopened mail in the possession of the Post Office
  • Annuity and pension payments under the Railroad Retirement Act
  • Special benefits paid to Medal of Honor recipients
  • Benefits under the retired serviceman’s family protection plan
  • Amount paid under workers compensation

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