Seizure and Sale of Tax Property

Failure to pay your federal income taxes can result in numerous severe penalties

One of those penalties is a property levy, which involves the IRS seizing and selling your property in order to recover the balance you owe. This consequence has devastating personal and financial effects. It’s important for anyone struggling with tax burdens or the threat of property levy to know what’s at stake – and what can be done to resolve this type of issue.

The IRS can order several types of property levies. Anything you own may be at risk, regardless of whether you have physical access to it or not. Belongings the IRS may seize include current and future tax refunds, wages or real estate. The IRS will then sell (or, in the case of monetary assets, retain) these items until your debt is paid off.

How IRS Seizure Works

Realizing you’re at risk of property seizure can summon feelings of fear and anxiety. While understanding the process won’t ease these feelings, it can still help to know what to expect. The process usually unfolds through the following steps:

• The IRS sends a notice demanding payment of back taxes. If possible, paying off the amount owed will resolve the issue immediately. Seeking an offer in compromise (or a similar solution) may also present the situation from escalating.
• The IRS will send a notice of Intent to Levy if the delinquent taxpayer fails to take action. You will also be granted the right to request a hearing, which allows you to file an appeal against the IRS.

Note that the IRS may and can skip a step depending on the nature of your case.

Filing an Appeal

You will be granted 30 days to appeal an Intent to Levy notice from the IRS. However, it’s worth noting that the appeals process is difficult to navigate. Working with a tax professional who’s well-versed in tax relief and filing appeals can make the process easier and boost your chances of success.

We at Rocket Tax Relief can help you every step of the way. Call us at 800-505-6814 or complete our online form for more information. We offer 15-minute tax consultations at no cost to you.