Can the IRS Take Your Home | IRS Seizure of Property | Fairfax VA Lawyer (2024)

TheIRShas the right to seize your home and other property if you fail to pay your federal income taxes. To exercise this authority, theIRSmust notify you before they can seize anything.

If you’ve been contacted by theIRSabout a tax debt, don’t assume they will come immediately to take your home. There are steps you can take now to stop theIRSfrom seizing your property.

In the following article, we’ll explore howIRSproperty seizures work and how to stop them. To learn more, speak to aFairfax VA IRS attorneyatSodowskyLaw Firm, PC.

How Does theIRSSeize Property?

Under federal law, theIRScan seize your property, but must follow a notification process before issuing a levy. A levy allows theIRSto forcibly take your assets to discharge your tax debt.

TheIRScannot legally seize your assets without first sending you five collection notices. These include:

1. Notice of Demand for Payment: Notice CP14 is sent first, providing the amount of tax debt you owe and instructions on how to make payments. It also describes the consequences of not paying your tax debt on time, including seizure of your assets.
2. 2^nd, 3^rd, and 4^thNotices: TheIRSwill send four more letters over the span of a few weeks. Notice CP501 will follow the Notice for Demand for Payment. It is followed by a third (CP503) and fourth (CP504) notice.
3. Final Notice of Intent to Levy: If you fail to respond to the first four notices, theIRSwill issue a fifth and final notice. Once theIRSsends you this notice (CP90 or CP297), you must respond within 30 days. If you don’t appeal or otherwise respond within 30 days, theIRScan issue a levy to take your property.

In certain situations, theIRSis not obligated to give you 30 days before seizing your assets. For example, theIRScan levy your property sooner if they consider collection on your debt is in jeopardy.

What Types of Property Can Be Seized by theIRS?

TheIRScan seize any property of yours, including personal possessions and real estate. This includes your home and cars. It doesn’t matter if your property is not in your possession. TheIRScan take your property no matter where it is located.

TheIRScan also seize your income by having it sent directly to them. This includes yourpaycheck, social security benefits, pensions, rental income, and balances in bank accounts and investment funds. It

Put simply, theIRScan seize most anything you own. However, they are legally prevented from levying certain types of assets. This includes unemployment, disability and worker’s compensation benefits, child support, livestock, and tools needed for work.

How Do You Stop theIRSFrom Seizing Your Property?

You can stop theIRSfrom seizing your assets by taking one or a combination of the following six actions:

1. Pay Your Tax Debt.The simplest thing to do is to pay everything theIRSclaims you owe in the time allotted.
2. Request a Collection Due Process (CDP) Hearing.You may appeal theIRScollection by requesting aCDPhearing. At the hearing, you will have to justify your claim that theIRSshould not seize your property. You could argue that theIRSerroneously determined the tax debt or that you already paid all taxes owed. If you disagree with the ruling made at the hearing, you can appeal again within 30 days.
3. Request an Immediate Stay of Enforcement.If you need more time to determine what to do, you can request an immediate stay of enforcement. This temporarily prevents theIRSfrom seizing your property.
4. File for Currently Non-Collectible Status.If you’re suffering financial or personal hardship, you could file for Currently Non-Collective status. Your expenses must exceed your income to qualify. If you are granted Currently Non-Collectible status, theIRSwill temporarily cease collections against you.
5. Negotiate an Installment Agreement.If you can’t pay your debt all at once, you can negotiate an Installment Agreement. This allows you to pay off your debt over time in small monthly payments.
6. Bargain for an Offer in Compromise.You can also negotiate an Offer in Compromise agreement with theIRSif you qualify. This will allow you to have your tax debt discharged at a reduced amount in one payment.

To Learn More aboutIRSSeizure of Property

If you want to stop theIRSfrom seizing your property, an experienced Virginia tax attorney can help. Negotiating with theIRSis complicated and stressful if you haven’t dealt with them before.

AtSodowskyLaw Firm, PC,we can handle theIRSfor you and stop their collection actions against you.We have years of experience helping clientswith tax debt manage their obligations to theIRS. Contact ustoday to learn more.