IRS Seizures

IRS seizures are one method that the government uses to collect large amounts of back taxes that an individual has owed for many years. Quite often the amount of the taxes is much smaller than the total amount owed because penalties and interest are applied to any unpaid balances each year. These compound each year making the bill even larger. Although there are many ways the IRS can collect the money it is owed, seizures are the last resort and are a very extreme measure to take. The IRS can seize almost all of your possessions without having to take you to court or get a judgment from a court. It is actually a very powerful tool in collection of taxes and one that the majority of taxpayers fear most.

If you find yourself worrying about taxes that you owe, it will be beneficial to seek the advice of a tax attorney. These are very knowledgeable and skilled individuals who can help you out of trouble with the IRS and handle all of the paperwork necessary to do so. They will be working hard, with your best interest in mind. Contact a tax attorney as soon as possible to minimize any accruing penalties.

The IRS is allowed to take just about everything you own to sell and redeem the money you owe. Some of these include:

* Any and all bank accounts;
* Earnings of all kinds;
* Any assets that you have transferred to your family and friends. These will be sold at fair market value, which is often a lot less than they are actually worth;
* Any real estate that you own. This includes your home, your furniture and your vehicle;
* Any federal pensions;
* The liquidity of any life insurance that you have;
* Any benefits or income from Social Security;

Although this is not a comprehensive list, it gives you an idea of just how devastating an IRS seizure can be.

With regard to the seizure of homes and businesses, the District Director of the IRS can simply sign a form that leaves you homeless or without a business to operate. The only exception is that if you owe $5,000 or less, the IRS cannot seize your home. In the case of seizing a business, the IRS does have to follow a certain procedure for this type of seizure. The IRS has to gain your permission to enter the business in order to shut it down. If you consent, you will have to sign a paper stating that you gave the agents permission to enter. If, on the other hand you refuse to grant them entry, the agents will apply to the District Court judge or magistrate for a court order to execute the seizure. Once this is done, and it is only a formality, the agents will enter your business, order everyone out, lock the doors and sell the property to the highest bidder. You will only be allowed to remove your personal effects and will not have very much time to do this.

The IRS only resorts to seizure under certain circumstances, including:

* A taxpayer who is continuously in default of taxes
* A taxpayer who is unwilling to work with the agents to clear up the outstanding taxes
* If all other methods to collect the outstanding taxes have failed