Posted by The TaxAdvocate Group, LLC

What Can The IRS Seize Having Issued Threatening Letter?

What Can The IRS Seize Having Issued Threatening Letter?

On the off chance that the IRS is in position to levy or seize, it is critical to recognize what is at risk.

Regardless of what the IRS may tell your customers or what you may have heard, it is in all respects improbable the IRS will levy on a house, vehicle, furniture, or gadgets. The benefits that customers might be the most worried about—their stuff are the things the IRS is to the least extent liable to take. This is essential to know in consulting with the IRS. 

In 2009, the IRS made 581 seizures of "hard" resources, for example, houses, vehicles, and other individual property. By correlation, around the same time, the IRS conveyed just about 3,500,000 levies on "soft" resources, for example, financial balances and wages. 

IRS endeavors to seize "hard" resources are serious, no doubt about it. Be that as it may, the IRS is plainly after tying up money. 

The purposes behind the attention on money, not home property, are in the IRC and the Internal Revenue Manual. Both affirm that if a property—for example, a house—is not valuable, the IRS is kept from seizing it. This takes out the lion's share of potential seizures. Regardless of whether a property has value, it can't be taken on the off chance that it is recorded as excluded in the IRC and is shielded from the IRS as an issue of public policy. 

Does the property have value? 

Inward Revenue Manual states that seizures are precluded "where the citizen has little equity in the property." IRC Sec. 6331(f) keeps the IRS from making an "uneconomical levy," which means the IRS must get a financial recuperation from the levy to do it. 

Precedents: If a vehicle is worth $7,500, and there is a bank credit of $7,500 on it, there is no value, and the IRS isn't interested. For a house, take the amount, subtract the mortgage, and diminish it further by the deal costs. There must be a genuinely considerable sum left a short time later for the IRS to be intrigued under the rules of equity

Regardless of whether there is value, a seizure is still, for the most part, something the IRS does not want to do. As a rule, a resistance after rehashed endeavors by the IRS is a precursor. Numerous seizures need official endorsement before being sent to an IRS property liquidation expert. What's more, a few, for example, an individual home, require outside court endorsement. 

Is the property absolved and shielded from seizure? 

Notwithstanding the security, the tax code provides for any property that needs value, Sec. 6334 of the IRC records explicit sorts of property that are shielded from IRS collection activities. These protections are known as exclusions. 

The advantages that are absolved from the IRS under Sec. 6334 incorporate the accompanying: 

Necessary apparel. Remember that the tax code utilizes the words "necessary" in portraying the attire that is excluded from IRS accumulations, which means the IRS can take apparel that isn't fundamental, for example, handbags, designer shoes, etc. However, the IRS isn't seizing your customer's TV, lawn mower and bed. 

  • Family unit products and goods  recently exempted up to $8,250 in value 
  • Devices earmarked for trade or business, exempted up to $4,120 in value

There are likewise wellsprings of income that are shielded from IRS' capacity to levy under Sec. 6334, including: 

  • Unemployment benefits
  • Workers' compensation benefits
  • Service-oriented veteran's handicap benefits 
  • Salary expected to pay court-requested child support
  • Supplemental social security for the advanced in age, visually impaired, or sick 
  • State and neighborhood welfare programs which depend on need or income


IRS issues are not kidding matters. However, convincing portrayal requires understanding the procedural substances of tax authorities. 

The IRC has on when the IRS can levy on property and limits on what it can take. With a couple of individual cases, the IRS can't act with a surprise. The IRS needs to give citizens fair treatment—notice and a privilege to be heard—before it can take somebody's property. 

The IRS issues many look-a-like notifications. However, the one that begins the levy procedure is the Final Notice of Intent to Levy. A CDP bid documented in light of the last notice permits goals of IRS issues without the danger of levy. The appeal likewise stops IRS gathering activity, moves an accumulation case into claims, and can give outside help from the Tax Court.

The TaxAdvocate Group, LLC
Contact Member