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How long would the IRS wait before they seize your assets?

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How long would the IRS wait before they seize your assets?

Postby maralyn » Sat Nov 10, 2012 3:20 am

If someone is late, or just does not pay their taxes, how long would it take the IRS to act? How long before the IRS begins to seize your assets?
maralyn
 
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How long would the IRS wait before they seize your assets?

Postby beldene70 » Sat Nov 10, 2012 3:24 am

There is no strict timeline. They will not seize (levy) your assets for filing late. If you just don't file eventually the IRS will file a substitute return on your behalf if you owe. Once they have done that they then have a debt to collect. If you already owe from a return you filed then it will be in collections right away.

For a year or two they will likely just send letters asking you to pay while adding interest and penalties to the amount you owe. If you still don't make any arrangements to pay them they will send you a certified letter (letter number CP504) that says that they can levy your assets if you do not pay. The first thing they will levy is any state tax refund due. This is not a big deal.

They cannot levy anything else until 30 days after the next letter which is 'Notice of Intent to Levy' If you ignore that letter then they are entitled to levy your paycheck (they will leave you a $100-$200 bucks depending on your situation and pay frequency) every pay period until the balance is paid. Your bank account can also be levied. They generally will not levy personal property (cars, boats) or real estate unless you owe at least $250k and only after an IRS revenue officer has knocked on you door to try and scare you into paying.

They would much rather scare you into paying that go to the effort of seizing your assets.
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How long would the IRS wait before they seize your assets?

Postby cradawg » Sat Nov 10, 2012 3:26 am

SEIZE meant the IRS will place your property under LIEN.
The total debt should exceed 50K
If not, call IRS and agree to set up an installment agreement where you will pay them a monthly payment
This will avoid having your assets being seized.
When the amount exeed 50K, you better be ready for the LIEN,
My advice to you, call IRS and chek the possibilities of offer compromise
If not, you start paying a monthly payment till you pay off what you owe,
As general law, even if you file bankruptcy, you can not cancel IRS debt.
If the IRS want to make decision to sell your property, it should be done after 10 years.
Read about sezing your property by IRS:
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Selling-Your-Property


http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Understanding-a-Federal-Tax-Lien
cradawg
 
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How long would the IRS wait before they seize your assets?

Postby holden » Sat Nov 10, 2012 3:43 am

it will depend to a limited extent to your responses to notices
if you ignore any of their notices, on continue to ignore, liens will probably be swift
if you respond to their notices and indicate you are making some attempt to comply, they might delay liens for an extended time
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