Understanding IRS Seizures & Other Items of Unpleasantness

 Before the IRS can seize your property, they typically have to satisfy a THREE STEP PROCESS that in theory, provides procedural safeguards by giving you sufficient notice, and the all important opportunity to appeal and/or challenge the Service’s proposed taking, viz. seizure. 

It all begins when the IRS mails you a serious looking letter entitled “Notice of Demand for Payment”.  When you refuse to pay, or alternatively, ignore this Notice, the IRS will send you a “Final Notice of Intent to Levy and Notice of Your Right to a Hearing” which is served upon you personally, transmitted via certified mail, or delivered to your last known address. 

You now have 30 days to request a Collection Due Process hearing (“CDP”). Nota bene, resultant cost-cutting initiatives at the IRS, taxpayers are no longer entitled to face-to-face meetings, making these hearings pro forma which is Sanskrit for inefficaciousness. This notwithstanding, Counsel still has the opportunity to present your case and propose a reasonable resolution, which may include an affirmative defense such as bankruptcy, innocent spouse, separation of liability, statute of limitations, etc.  

Conversely, many people decide to go it alone. Pro se. And in doing so, usually make matters considerably worse. In fact, the IRS prefers to deal with pro se litigants because most people don’t know what they’re doing.  Easy Peasy, predictable and abysmal.  

After your CDP has been held, the IRS will eventually send you a decision letter. And if you still disagree with their decision, you'll can get another bite at the apple (provided you appeal the decision within 30 days).  

OK, for brevities sake, let’s assume you represented yourself and everything went to rack and ruin. There’s no more “Notice” and the IRS levies your bank account and takes your money.  Actually, your money is still in the bank (for 21 days) but that dirty lucre is stuck in escrow and your checks are bouncing like rubber balls. Editors note: around this time your personal relationships usually go to hell in a handbag. But wait, there’s still hope, provided you’re not stupid enough to go it alone. That is to say, a competent representative may still be able to get your money released either in part or plenary. 

No? You still haven’t had enough? OK let’s step things up! The IRS takes your stuff. Personal property seizures typically involve tow trucks and laying claim to property that’s outside of your home. 

Still not satisfied? OK, assuming the US Attorney gets a Writ of Entry (which is almost always a lock) the IRS, now with guns blazing, comes into your home and takes nearly all of your possessions. 

In conclusion, you now have a propaedeutic understanding of IRS seizures. Accordingly, the author of this enlivened screed strenuously advises you not to ignore IRS Notices, and if needs must, to seek out professional help and guidance for all of your tax controversies.

David Selig