IRS Seizures FAQs
The IRS is required to release a seizure if it determines
(1) you have paid your debt
(2) the period of collection ended prior to seizure
(3) release of the seizure will help you pay your debt
(4) you enter into an installment agreement with the IRS that does not allow seizure
(5) the IRS agrees the seizure creates an economic hardship, i.e. it prevents you from meeting basic and reasonable living expenses
(6) the value of the property is more than the amount owed and releasing the seizure will not hinder the IRS to collect the debt.
The IRS will sell your interest in the property and apply the proceeds of the sale to your tax debt.
Yes. However, the IRS cannot seize your home in various circumstances including if you have an offer in compromise or the IRS agrees seizing the property would result in an ability to meet basic, reasonable living expenses.
It depends. Generally, the IRS is required to provide you notice prior to seizure. The process may be delayed if you request a hearing or wish to enter into an offer of compromise.
The IRS can seize assets including:
• wages and salary
• bank account funds
• retirement accounts
• your home, your car, and other property.
The IRS cannot seize:
• unemployment benefits
• certain annuity and pension benefits
• certain service-connected disability payments, worker’s compensation, and other assets.
Yes. However, the non-debtor must be compensated by the IRS.