What Is a Notice of Seizure?

IRS Building Where IRS Seizure Decisions are Made

Paying Taxes and the IRS

One of the most dreaded days of the year for every person out there is April 14th, better known as Tax Day. Filing your taxes has long been a stressful, lengthy, and daunting project, regardless if you are a home or business owner. It can be easy to just skip paying your taxes, but there are serious consequences in doing so. The one thing we at Don R. Walker, C.P.A. hope our clients never receive is a Notice of Seizure from the IRS. That is one of the hardest and scariest letters to get in the mail. We want to help avoid those situations by offering CPA help to anyone that needs it. To learn more about the seriousness of an IRS seizure in Fort Worth, TX, keep reading or give us a call at 817-905-1040.

Stack of Tax Forms to Prevent IRS Seizure

What To Do With an IRS Seizure Notice

Obviously, this is a scary document to receive. Before going over what to do if you receive a notice, it’s important to understand what the notice actually is. A notice of seizure from the IRS is a written statement saying the government has taken your property. It’s actually the last step in the entire seizure process. Once you have received this notice you will have 30-days to pay back everything you owe in taxes. If you are unable to pay in full, there are installment and partial payment options. Failure to make the payments in a timely manner will result in the loss of your property. The property that the IRS can take is minimally restricted. They can take anything that does not contribute to your basic survival and shelter, such as cars, RVs, motorcycles, jewelry and more. The IRS seizure of assets can also include your house or your business to turn around and sell in order to pay off your tax debts. There is no crash-course in how to stop an IRS seizure, however, there are things you can do ahead of time to avoid finding yourself in this situation. There is a process that the government goes through to address and complete a tax settlement, they don’t just start by taking your property.

The IRS Seizure Process

As mentioned, there is a process when it comes to settling tax debt. The government doesn’t start out by just storming in and taking your things. The IRS actually has a 3-step process that they use in almost every situation. 

  • “Notice of Demand for Payment”: The first step in the process is a notice of payment. This occurs when you have failed or neglected to pay your taxes on time so the government sends a written notice to remind you that payment is due.
  • Response: Step number two is to wait. You, the property owner can acknowledge, ignore, or neglect the notice however you see fit. There is usually a time-frame in which you are expected to pay. If you don’t pay, the IRS will take action with step three. 
  • “Final Notice of Intent to Levy and Notice of Your Rights to a Hearing”: The final step in the IRS seizure process is a 30-day notice. This gives you 30-day to schedule an appeal or make payment arrangements. If nothing is done after 30-days, the IRS can begin taking your assets. 

If you are a business owner, a great step to take for yourself and your company is to invest in business coaching. There are courses that go over these things and can help you avoid being the subject of an IRS seizure. Regardless of the type of property you own, though, the biggest takeaway that we can offer for clients is to pay your taxes on time. Whether you are a homeowner or a business owner, paying your taxes in a timely manner will be the best way to avoid any of these problems. For that, rely on Don R. Walker, C.P.A.. We can help you with organizing, filing, and submitting your taxes so you avoid the possibility of this situation.

Frequently Asked Questions

  • What assets can the IRS seize?
    • The IRS can take any item that you do not need for your basic survival and shelter. This includes tax-deductible items such as boats, RVs, cars, fine jewelry, art, motorcycles and more.
  • Can IRS seize your home?
    • Yes, the IRS can take your home for failure to pay your taxes in a timely manner. There is very little that the IRS is not allowed to seize or take from taxpayers. 
  • How long does it take for the IRS to seize property?
    • Once it is determined that you have defaulted on your taxes, the IRS will issue a 30-day notice. As soon as the 30-days are up, if they have not received full or an agreed-upon partial payment, your property will be seized by the government. 
  • What happens when the IRS seizes your house?
    • If and when your home is seized by the IRS, it will be sold. The funds from the sale of your home will be used to pay for a few things. The first is the cost to actually seize and take your property. Once that is paid, whatever is left over will go towards your tax debt. 
  • Can the IRS seize your business?
    • Yes, just like your home, the IRS can seize your business for failure to keep up with your tax payments. There is very little that the IRS is prohibited from taking.
CPA Agent Calculating Taxes to Avoid IRS Seizure

Connect With Us Today for More Information

Rely on Don R. Walker, C.P.A. when you have questions and concerns about an IRS seizure in Fort Worth, TX. Call us today at 817-905-1040 for reliable service.