Everything You Need to Know About Receiving an IRS Seizure Letter
What Is an IRS Property Seizure?
An IRS property seizure is the taking of personal property for unpaid federal taxes. Internal Revenue Service (IRS) officers typically send four to five notices before seizing assets. Only the last notice is legally capable of levying. This is usually done through a court order and seizure warrant.
You may wonder whether you should get a lawyer to advise and advocate for you when you are facing an IRS property seizure. The IRS is among the most feared authorities in the world of taxation. They have the power to seize your property if you owe them more than $5,000 in taxes. One way to prevent this from happening is by hiring a tax attorney skilled in IRS problem resolution who will fight for your rights in court.
What Is an IRS Seizure Letter?
An IRS seizure letter is correspondence that the IRS sends to you describing the seized property or money and the reason for the seizure.
Generally, the IRS sends these letters when it has determined that you owe them money and they intend to collect something from you, such as your property or state income tax refund, to recover what you owe them.
Why Would the IRS Send 2022 Letters?
The Internal Revenue Service has sent out a letter to many Americans informing them that they need to submit their tax information. However, some are questioning why the IRS would send these letters for 2022.
If a return is due and the taxpayer has not filed their taxes, they will receive a letter from the IRS. The letter will include an estimated amount of taxes owed and a deadline to file. These letters are sent in order to remind taxpayers of their obligations and help them avoid penalties.
If you need IRS help for the coming tax season, the professionals at Hutton Tax may offer you valuable information and resources.
What Is a Notice of Intent to Seize IRS?
When a taxpayer owes the IRS back taxes, the IRS will send them a Notice of Intent to Seize. The IRS will seize the taxpayer’s assets, including any federal and state tax refunds, to satisfy the debt.
In most cases, the IRS will place a federal tax lien on property or seize assets if the taxpayer does not pay or make arrangements to pay within 10 days after receiving the Notice of Intent to Seize. The notice is sent by certified mail and should be received at least 10 days before any seizure occurs.
How Does the IRS Conduct a Seizure of Assets?
When an IRS tax debt is seriously delinquent, the Internal Revenue Service is able to seize property. They can seize property for non-payment of taxes, penalties, and interest to the government.
They will typically send a notice of seizure to the owner of the assets and follow these steps:
- The IRS sends a notice and demands payment.
- The IRS files a lien against the taxpayer’s property if the taxpayer does not comply.
- If there is still no compliance after a final notice of intent, they can seize any of the taxpayer’s assets without warning or notice.
Those unable to respond to the IRS within ten days may have their assets seized by force. For more information, contact tax professionals. Hutton Tax may be able to set up an installment agreement to avoid IRS levies.
Can the IRS Seize Your Bank Account Without Notice?
A common misconception about the IRS is that they cannot seize your bank account without notice. This is not true.
The IRS can seize your bank account without notice if you are seriously delinquent in tax debt. For example, a tax lien can be placed on your property if you owe them more than $5,000 in taxes and haven’t paid them for at least 90 days.
Types of assets and property subject to an IRS levy include:
- Bank accounts
- Real estate
- State tax refunds
- Social Security benefits
If you receive a levy notice, be sure to read it carefully. Having a skilled tax attorney to help you with your tax matters may benefit you. Tax professionals can determine whether you qualify for any IRS tax debt relief or set up payment arrangements with the IRS. Contact Hutton Tax for a free consultation.
What Is the Average Time it Takes for the IRS to seize property?
When a taxpayer hasn’t paid back taxes or the government believes that the property is being used to commit fraud, the IRS may seize the property. Depending on the type of asset and the reason for the seizure, the IRS can seize property within days or weeks.
The IRS will usually seize assets that are considered to be liquid, such as cash or higher-value assets like real estate.
As long as your tax payments are current and you have no outstanding tax liens or warrants, the IRS cannot seize your assets without first issuing a “final notice.”
What Are the Steps to Stop an IRS Seizure?
While the IRS has the power to seize assets, asset seizure is a last resort for the IRS. To stop an IRS seizure, call them as soon as possible and provide your name and phone number. Afterward, you will be contacted by a local revenue officer to schedule an in-person meeting.
You can schedule a phone meeting if you cannot attend an in-person meeting. Consider contacting a reputable Oklahoma tax attorney for advice if you need help with this process or have any questions.
Can an Attorney Help You Avoid IRS Property Seizure?
Even though many people are unaware, the IRS has been seizing property for many decades now, and it’s not only restricted to businesses or those who owe a lot of money.
If you owe the IRS money, they have the legal right to seize your property to recover it. It may be possible to avoid this process by following certain steps and taking certain precautions. Contact a tax relief attorney for advice to be proactive and learn more about this process.