5 Things You Should Know About the IRS

As a member of the Cincinnati Bar Association, it was exciting to see my article about solutions to today’s IRS collection problems as the cover story in March’s monthly bar journal.   
Here is a brief overview of the article - 5 Things You Should Know About the IRS:
(1)     The offer in compromise program is not as advertised on television.
(2)     IRS seizures of houses, personal [...]

What’s the difference between an IRS tax lien and a tax levy?

The IRS has two ways to collect back taxes:  a Federal tax lien and tax levy.  A tax lien is different from an IRS levy – the lien does not result in the IRS taking your property from you.  That is done by levy.
You have rights to defend the filing of a lien, and prevent the issuance of a levy.  To be able to [...]

Will the IRS take my house? Seize my car?

One of the most common concerns about owing the IRS back taxes is that they will show up one day and take your house or car from you.
No matter what the IRS may tell you or what you may have heard, it is very unlikely the IRS will levy on your house, car or furniture.  The assets [...]

Can the IRS take my property without telling me first?

In most every case, the IRS cannot take your property until they send you a letter stating their intentions.  This letter – called a “Final Notice of Intent to Levy” - is the government’s last attempt to reach you before they start levying your wages, bank accounts or other property.
The Final Notice of Intent to Levy gives you very important rights [...]

Self-employed? All IRS levies are not created equal

IRS levies on those who are self-employed are serious, but it may not always be as bad as it seems. 
If you are self-employed, and if your right to a payment is dependent on the performance of future services – meaning the “job” has not yet been completed – an IRS levy reaches nothing. Your right [...]

What the IRS must do before it enters a private space to make a seizure.

The IRS cannot come into your private space on their own and seize business assets or your valuable personal possessions.  They first need either:
(1)   Your permission or
(2)   A writ of entry from a federal judge.
This is a basic Fourth Amendment protection against unreasonable searches and seizures.
The IRS can enter upon public areas to [...]

How common are IRS mistakes in property seizures?

The IRS appears to be human, and it makes legal and administrative errors when seizing property, says the Treasury Inspector General for Tax Administration (TIGTA).
TIGTA just completed a review of 50 IRS property seizures to determine if they complied with the requirements of Internal Revenue Code sections 6330 to 6344 and Internal Revenue Manual guidelines.
Here [...]

Protecting retirement accounts from IRS seizure.

Retirement accounts are considered to be an investment that is protected from creditors.  But here is an interesting question from a reader about a big exception to that rule (yes, it is the IRS): 
Several years ago, I liquidated all of my retirement money to pay for gambling trips to the casinos.  My husband and I [...]

Can the IRS take my spouse’s income if only I am liable?

The IRS cannot take collection action against the separate income of a non-liable spouse.  
If separate tax returns are filed, only the person who signed and filed the return is legally obligated to pay the taxes.  If your spouse did not sign or file a joint return with you, then the IRS cannot collect from him [...]

When is the IRS prohibited from taking collection action? Part III

Here are the final five situations to look for when the IRS cannot take collection action:

When the value of the property is protected by exemptions provided by Section 6334 of the Internal Revenue Code.  There is certain property that the IRS cannot take under any circumstance, including your furniture and household goods valued up to [...]

keep looking »