A legal seizure of your property for overdue taxes is called a levy and it's a very dramatic event if you do not pay off your tax debts.
The IRS wields a huge amount of power when it comes to seizing property and unfortunately, they are allowed to take most of your possessions. What can they take?
- Bank accounts
- Certificates of deposit
- Accounts receivable
- Business Assets
- Content of safe deposit boxes
- Valuable collections
- Real estate (they will generally take anything that is not your primary homestead, but with the approval of the IRS district director, they can also take your house away)
- In "flagrant" cases, the IRS can even take your pension or retirement plan and your Social Security payments.
There are a few things the IRS cannot take from you, but it really just boils down to the basics:
- Necessary clothes
- Necessary school books
- A small amount of furniture
- Food and personal effects
- A small amount of books or tools of the trade
- Unemployment benefits
- Undelivered mail
The amount that you can lose simply by not paying your taxes is staggering. If you are in a situation where you owe the IRS money (link to IRS Problems page) and you do not know how to go about paying it off, contact Houston tax arrears attorney J. Thomas Black. He can review your situation and help you figure out possible payment plans or bankruptcy options. Call him for a free consultation at 888-707-1233.