IRS Asset Seizure

Long-time tax liability might be met with the most extreme forms of compensation by the IRS. It is within their right to seize assets- like your home, your car, and valuables such as jewelry, and collectibles to pay off the debt. These items might not be even sold at fair market value; the government’s goal is to quickly take money from you by any means possible.

They might even collect by seizing your insurance policies and retirement accounts, leaving you with absolutely nothing.

There is a three-step process that the IRS follows before they seize any of your property. First, the IRS issues you a notice, next, you must refuse to pay, and finally, the IRS will issue a final notice. If it does get to this point, you can request a collection due process hearing. Getting experienced representation in your corner at this hearing can make all the difference.

Contact us immediately to take action and start a plan that will satisfy the IRS’s need to collect from you. With our help, your planned course of action for taking care of tax liability is going to be far preferable to the course of action the government will enforce upon you.

Receiving a letter from the Internal Revenue Service (IRS) stating that they intend to seize your assets to satisfy an outstanding tax debt is a scary situation. You may feel overwhelmed and unsure of what to do or where to turn for help. Don’t worry, Memphis Consulting Group has you covered. We’ll guide you through the complex world of IRS asset seizure in Memphis, Tennessee, and provide valuable tips on how to protect your hard-earned assets.

A free consultation with our tax professionals can provide taxpayers with an understanding of their rights and options to reduce their liability and protect their assets from IRS seizures.

Understanding IRS Asset Seizure in Memphis, TN

The federal government has the authority to seize your assets if you fail to pay your tax debt. This process, known as an IRS asset seizure, is regulated by Title 26 of the United States Code and the Internal Revenue Code section 6335. The IRS may seize various types of assets, such as jewelry, vehicles, collector coins, bank accounts, and even retirement accounts. In Memphis, TN, the IRS aims to retrieve funds from taxpayers at a fair market value, ensuring that the process is as expedient as possible.

To protect your assets from IRS seizures, several measures can be taken. For instance, a taxpayer may be exempt from levy depending on their filing status, standard deduction, and dependents. Additionally, the IRS is responsible for all costs associated with cleaning up and disposing of any seized property. Understanding the legal basis for levy and asset seizure and the types of assets subject to seizure is crucial for safeguarding your assets.

The Legal Basis for Asset Seizure

Title 26 USC 7302 allows the forfeiture of property seized through legal means. Search warrants issued according to 18 USC Chapter 205 and the Federal Rules of Criminal Procedure are specially authorized for this purpose. This includes the seizure of a taxpayer’s bank account if it is determined to be subject to forfeiture. Payments to informants for information and rewards relating to Title 26 forfeitures follow the procedures outlined in IRM 9.4.2, Sources of Information, and the minimum bid for seized assets during the auction process is determined by the IRS.

The threshold value for administrative forfeitures under Title 26 is $100,000 or less, meaning that the IRS can seize assets up to this value without needing to go through a judicial process. A good faith purchaser for value may be able to invoke the innocent owner defense before a court if the government obtains a judgment of forfeiture. This defense can help protect the purchaser from having their assets seized by the government and potentially requiring them to provide additional funds to satisfy the tax debt.

Types of Assets Subject to Seizure

Assets that can be seized by the IRS in Memphis, Tennessee, include jewelry, collector coins, vehicles, and other personal property. Financial instruments, such as promissory notes, currency, postal money orders, personal or business checks, stocks and bonds, and cashier’s checks, may also be liable for seizure. The IRS has a variety of methods to collect back taxes. It can garnish wages or take money from bank accounts and other financial accounts. They can also seize and sell vehicles, real estate, and other personal property.

The bank will make the prepared cashier’s check payable to the “Internal Revenue Service” for the correct amount. This check will be deposited into the IRS suspense account.

There are specific assets that are excluded from Title 26 forfeiture, such as assets that are the proceeds of the Title 26 violation, non-gaming amusement machines, evidentiary records, and leased property.

Being aware of the types of assets subject to seizure and the process of asset seizure can help you better understand how to protect your assets from IRS seizure in Memphis, TN.

How the IRS Seizure Process Works in Memphis, TN

The IRS seizure process in Memphis, Tennessee, operates according to Internal Revenue Code section 6335 and related regulations, and involves the seizure and sale of assets at public auction. This seizure may cause an economic hardship, as the IRS has determined that it prevents individuals from meeting their basic, reasonable living expenses.

IRS Revenue Officers are highly trained agents responsible for collecting taxes through levy, garnishment, and asset seizures. The process involves issuing a notice, declining payment, and issuing a final notice, after which a collection due process hearing can be requested.

If property is seized incident to an arrest or a lawful search and is determined to be subject to forfeiture, the Treasury Executive Office of Asset Forfeiture suggests re-seizing the property utilizing a seizure warrant. Once the property is sold at public auction, the proceeds are used to satisfy the tax debt.

Notice of Intent to Levy

A Notice of Intent to Levy is a legal document sent by the IRS to inform a taxpayer that they intend to take action to seize their assets in order to satisfy an outstanding tax debt. This notice serves as the final reminder to the taxpayer that the IRS intends to levy their wages, bank accounts, or state tax refund due to their failure to pay any existing balance on one of their tax accounts. Publication 1660 provides a comprehensive overview of your appeal rights, outlining your rights in full.

Receiving a Notice of Intent to Levy can trigger feelings of anxiety and confusion. It’s essential to act promptly and seek professional assistance to explore your options and ensure that you fully understand your rights and the potential consequences of the IRS’s actions.

Notice of Seizure

A Notice of Seizure is a notification that the government has taken possession of your property. The procedure for receiving a Notice of Seizure may differ depending on the kind of property seized, but generally, the IRS will send a Notice of Seizure to the taxpayer’s last known address. Receiving a Notice of Seizure can have serious consequences. The IRS may take possession of the seized property and liquidate it at a public auction, with the funds generated from the sale being used to cover paying the taxpayer’s outstanding tax balance.

Upon receiving a Notice of Seizure, it is essential to take prompt action. Consult Memphis Consulting Group to discuss your options and ensure that your rights are protected throughout the process.

Public Auction and Asset Disposition

The process for public auction and asset disposition involves disposing of surplus property through a competitive sale to the public, typically via a sealed bid or auction. The proceeds of asset sales are generally reinvested back into the program. The IRS follows specific procedures for determining the amount and terms of sale for administratively forfeited property, such as providing notice of the sale in a newspaper of general circulation within the judicial district where the seizure was made, with a minimum of ten days between the date of publication and the sale.

Each asset or interest must be sold separately if competitive bids are solicited, and all personal property must be sold “as is” with no implied or expressed guarantee or warranty. The United States reserves the right to reject any bid, and all prospective bidders must complete a Bidder Registration Form.

Payment methods that are acceptable include cash, cashier’s check, certified check, or postal money order. The amount payable should be equal to the accepted bid.

Protecting Your Assets from IRS Seizure in Memphis, TN

Taking proactive steps to address tax liability issues, consulting with a professional advisor, and being aware of one’s rights and options can be beneficial in protecting assets from IRS seizures. Negotiating a tax resolution that is accepted by the IRS is the only approach to releasing an IRS tax levy. This is essential for avoiding any potential financial difficulties.

It is recommended to contact Memphis, Tennessee tax lawyers if you owe tax payments to the IRS. They can help you establish a tax settlement plan that works best for your situation. By addressing tax liability issues, seeking professional assistance, and understanding your rights and options, you’ll be better equipped to protect your assets from IRS seizures in Memphis, TN.

Addressing Tax Liability Issues

Two measures that can be taken to address tax liability issues are to negotiate or accept a payment plan with the IRS and to claim tax credits, deductions, exclusions, and loopholes that are part of the tax code. The IRS provides installment agreements, offers in compromise, and partial payment installment agreements, which can be submitted through the Internet, by telephone, or by post.

The tax credits, deductions, exclusions, and loopholes that are applicable to you depend on your individual circumstances. It is recommended that you seek the advice of a tax professional in order to determine which credits, deductions, exclusions, and loopholes you may be eligible for.

Seeking Professional Assistance

Engaging professional help for IRS asset seizure can offer valuable knowledge and counsel on the intricate procedure, comprehending your rights and alternatives, bargaining with the IRS, and potentially diminishing the amount owed. A tax lawyer can negotiate a tax settlement with the Internal Revenue Service, providing valuable assistance during this challenging process.

Memphis tax professionals can provide the necessary assistance and direction to safeguard your financial future, providing guidance on filing taxes, aiding with IRS audits, and rendering assistance with IRS asset seizures. Memphis Consulting Group is well-practiced in negotiating with agencies such as the IRS and the Tennessee Department of Revenue on your behalf.

By seeking professional assistance, you can better navigate the complex process of IRS asset seizure and protect your assets.

Understanding Your Rights and Options

Taxpayers are entitled to receive notice prior to their assets being seized by the IRS, and they may also have the option to challenge the seizure. The Taxpayer Bill of Rights organizes the existing rights in the tax code into ten fundamental rights, making them clear, understandable, and accessible.

Being aware of your entitlement to notification prior to asset seizure and your recourse to challenge the seizure is crucial in protecting your assets from IRS seizure in Memphis, TN. By taking proactive steps to address tax liability issues, seeking professional assistance, and understanding your rights and options, you can better navigate the complex world of IRS asset seizures and protect your hard-earned assets in Memphis, TN.

Retirement Accounts and IRS Seizure

Retirement accounts, such as 401k plans, IRAs, SEP-IRAs, and Keogh plans, are financial instruments designed to accumulate funds for retirement. The IRS has the authority to seize retirement accounts in certain circumstances, which can significantly impact your financial future.

However, certain retirement accounts, Social Security benefits, and certain types of insurance policies are exempt from levy according to IRC 6334.

You can safeguard your retirement accounts from IRS asset seizure by addressing any tax liability issues promptly, consulting a professional for advice, and being aware of your rights and available options. Taking these steps can help protect your retirement savings and ensure a more secure financial future.

Real-Life Examples of IRS Asset Seizures in Memphis, TN

IRS asset seizures can significantly impact individuals and businesses, as the IRS takes possession of a taxpayer’s assets to satisfy a tax debt. While there may not be specific documented instances of IRS asset seizures in Memphis, Tennessee, it is crucial to understand the various laws and potential repercussions of these actions on your financial well-being.

By being aware of the real-life implications of IRS asset seizures, you can better appreciate the importance of addressing tax liability issues, seeking professional assistance, and understanding your rights and options in order to protect your assets from seizure.

How a Memphis Tax Attorney Can Help with IRS Asset Seizure

A Memphis tax attorney can offer legal advice and representation during a collection due process hearing, providing valuable assistance in navigating the complex process of IRS asset seizure. An attorney with expertise in IRS tax law can assist you in negotiating a tax settlement that will have the least impact on your Memphis lifestyle.

Memphis tax professionals can provide guidance on filing taxes, aid with IRS audits, and render assistance with IRS asset seizures, ensuring your financial future is safeguarded. By entrusting your tax audit to Memphis lawyers who are adept at negotiating with the IRS and the Tennessee Department of Revenue on your behalf, you can better protect your assets from IRS seizures and secure your financial future.

Free Consultation with a Memphis Tax Professional

A free consultation with Memphis Consulting Group can provide taxpayers with an understanding of which services are most suitable for them and may reveal deductions, credits, or other tax strategies that they are unaware of that could significantly reduce their tax liability. Memphis tax professionals can provide guidance on filing taxes, aid clients with IRS audits, and render assistance with IRS asset seizures, helping you navigate the complex process and protect your assets.

By seeking professional assistance, you can better understand your rights and options and take the necessary steps to safeguard your assets from IRS seizures in Memphis, TN.

Understanding the legal basis for IRS asset seizure in Memphis, Tennessee, the types of assets subject to seizure, and the IRS seizure process is crucial for protecting your assets. By addressing tax liability issues, seeking professional assistance, and understanding your rights and options, you can better navigate the complex world of IRS asset seizures and safeguard your hard-earned assets. Don’t wait until you receive that dreaded letter from the IRS – take action now and secure your financial future.

Frequently Asked Questions

What does the IRS do with seized assets?

The IRS will typically seize assets to pay off the taxpayer’s outstanding tax debt. They will then proceed to sell the assets at auction, and any money left over after debt has been paid will be returned to the taxpayer.

How long before IRS seizes assets?

If the IRS decides to seize assets, taxpayers typically have 30 days to pay their taxes or enter into an agreement with the IRS. After that period, the IRS can start seizing assets without giving any further warning.

However, the IRS does have the right to issue a jeopardy levy without giving any notice to the taxpayer. As such, it is important to take swift action if you receive notification from the IRS.

What assets cannot be seized by IRS?

The IRS cannot seize certain assets, such as your home or car used to get to and from work, as well as the money you need for basic living expenses. These are protected by law, but any other assets are still subject to IRS seizures.

It is important to keep this in mind when considering your financial options.

How often does the IRS seize property?

Yes, unfortunately the IRS has the power to seize property in order to satisfy unpaid tax liabilities. Seizures can take place on a regular basis depending on the amount and age of the debt owed.

The IRS has the authority to seize assets such as real estate, vehicles, and other personal property. They may also garnish wages or place liens on bank accounts.