The IRS can seize your assets if they demand payment.
Meaning, if you owe the bureau a lot of unpaid taxes, you may not have a lot left after they're finished seizing your properties.
The IRS usually uses factors in determining what assets to take:
- The tax liability amount vs.
the amount of the asset required to pay it off - If it's not hard to take and sell the assets
- The taxpayer's attachment to the assets
This gives you the chance to choose to sell your assets on your own to settle your back taxes.
The properties often seized by the IRS are as follows:
- Accounts in banks
- Vehicles, including automobiles, yachts, planes, and recreational vehicles
- The cash value of life insurance
- Accounts receivable
- Investments in bonds and stocks
- Wage
- Assets for collection
- Owned buildings and houses
- Keoghs, IRAs, Pensions
- The home you live in
- Clothing, not including fur coats and luxury wear
- Fuel, furnishings, personal effects and supplies limited to $6250
- Tools of trade and books up to $3,125
- Books for school
- Benefits for unemployed individuals
- Worker's compensation
- Public assistance money
- Job training benefits
- Unreceived mail
- Court-ordered child support
- Special Treasury fund deposits by employees of the Public Health Service and the armed forces who are working outside the U.
S.. - A few disability payments
- Minimum exemption amount of wages, salary and other income
- Public assistance payments from welfare or SSI
Your taxes will have to be paid in full, or you can negotiate an installment deal with the IRS, prove a hardship, or prove that the value of the asset taken exceeded that of what you owed.