By law, the lien is in favor of the United States and is upon all property and rights to property of the person with the unpaid tax.
It gives the IRS the authority to seize any proceeds from sales of real estate owned by a delinquent taxpayer.
To protect the government’s right of priority against other parties who are owed money by the same person, the IRS will file a Notice of Federal Tax Lien, which puts other creditors on notice about the IRS’s claim.
After receiving a notice that a lien has been filed, the tax professionals at Bayshore CPA’s, P.A. located in Mooresville, NC will work with you to help minimize IRS actions and ensure that deadlines are met for initiating applicable appeals.
There are many strategies that can be used to try to prevent or delay the IRS from seizing personal and business assets.
The knowledgeable professionals at Bayshore CPA’s know the IRS seizure procedures and the laws that govern them.
What Happens If The IRS Seizes My Property?
If the IRS seizes your house or other property:
- The IRS will sell your interest in the property and apply the proceeds (after the costs of the sale) to your tax debt.
- You may appeal before or after the IRS seizes and sells your vehicle(s), real estate, or other property.
- After the seizure proceeds have been sent to the IRS, you may file a claim to have them returned to you.
- You may also appeal the denial by the IRS of your request to have seized property returned to you.
The IRS is required to release a seizure if it determines that:
- You paid the amount you owe.
- The period for collection ended prior to the seizure being issued.
- Releasing the seizure will help you pay your taxes.
- You entered into an Installment Agreement and the terms of the agreement do not allow the seizure to continue.
- The seizure creates an economic hardship, meaning the IRS has determined the seizure prevents you from meeting basic, reasonable living expenses.
- The value of the property is more than the amount owed and releasing the seizure will not hinder the IRS’s ability to collect the amount owed.
Please note: The release of a seizure does not mean you do not have to pay the balance due. You must still arrange with the IRS to resolve your tax debt or a seizure may be reissued.
Do Not Risk Losing Your Property By Dealing With The IRS On Your Own
At Bayshore CPA’s, P.A., your peace of mind is our motivation. To learn the options available to you when the IRS has seized or threatened to seize your property:
Call our office now located in Mooresville, NC at 704-660-9317 to schedule your consultation.