(Newswire.net — January 13, 2023) — The U.S. expects to get $4.71 trillion in federal tax revenue in 2023. A huge chunk of that money comes from the collection of individual income taxes. That’s why it’s crucial the U.S. government chases up unpaid income taxes (and other taxes), or the economy simply would not run.
If you owe the Internal Revenue Service (IRS) taxes and cannot pay, you may be wondering if the IRS can seize your property to satisfy the debt. The IRS has the ability to seize property to collect back taxes, but it is important to understand the process and your rights as a taxpayer.
In this quick guide, we’ll make things a little clearer about what the IRS can do when it comes to property seizure. Read on to get the lowdown.
What is a Tax Lien?
A tax lien is a legal claim that the IRS can place on your property when you owe back taxes. A lien gives the IRS the right to take ownership of your property if the tax debt is not paid. A lien can apply to real estate, personal property, and financial assets, such as a lien on bank accounts.
The IRS will usually send a notice of a tax lien after you have been given several opportunities to pay the debt or make payment arrangements. The notice will explain the amount of the debt and your rights as a taxpayer.
What Is a Levy?
A levy is a legal seizure of your property to satisfy a tax debt. The IRS can levy your wages, bank accounts, and other financial assets. The IRS can also place a levy on your home or other real estates.
The IRS will usually send a notice of a levy at least 30 days before taking action. The notice will explain the amount of the debt and your rights as a taxpayer.
Can the IRS Take Your Property Without Notice?
The IRS is required to follow certain procedures before taking action to seize your property. This includes sending you a notice of a tax lien or levy.
In some cases, however, the IRS may be able to seize your property without notice if it believes that the property is in danger of being sold or transferred to avoid payment of the tax debt.
What Can I Do if the IRS Places a Lien or Levy on My Property?
If the IRS places a lien or levy on your property, you have options for addressing the debt. These options include:
- Paying the tax debt in full
- Making payment arrangements with the IRS
- Disputing the tax debt
- Filing for bankruptcy
Paying your tax debt back in full is the best option. However, consider the other options if full payment is not visible. The last thing you should do is avoid the IRS!
Check out this website for professional help with your IRS tax lien.
The IRS Can Seize Property if You Don’t Act
The IRS has the authority to seize property to collect back taxes. If you owe taxes and cannot pay, it is important to understand your rights and options for addressing the debt.
You may be able to pay the debt in full, make payment arrangements with the IRS, dispute the debt, or consider filing for bankruptcy. It is important to act quickly to address your debt, as the IRS can take action to seize your property.
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