IRS collection threats: Myth vs. Reality

My clients with IRS collection problem come to me with different ideas about what will happen to them because they did not pay their taxes.  Is the IRS going to show up one day and seize my house?  Levy on my income so I cannot provide for my family?  Shut down my business?  When do [...]

3 ways that an IRS levy will surprise you

If you owe the IRS back taxes, the IRS is required to give you a 30 day notice before they can start to levy and seize your property.  This warning of levy action is required by law (Section 6330 of the Internal Revenue Code).
The final IRS warning letter will have the words “Final Notice of [...]

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 [...]

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