Businesses that fail to pay their taxes may be subject to physical asset seizures by the IRS. While property seizures happen only rarely and in extreme cases, the loss of a business’s hard-earned assets can be devastating for their financial future and overall well-being. With the help of an experienced accountant, businesses can avoid physical asset seizure.
Businesses that believe that they are at risk of having their physical assets seized by the IRS should get in touch with the Roseville IRS business seizure accountants from Cook CPA Group. The accountants that work with Cook CPA Group can help business owners make arrangements to pay their taxes so that their physical assets do not end up being seized by the IRS. Contact Cook CPA Group soon to learn more about how your business can avoid seizures.
How the IRS Seizes Property
There are only certain types of property that the IRS is able to seize from Roseville residents; the IRS can seize personal property and real estate. Note that the property they seize does not have to be in your personal possession. As long as you own it, they are able to seize it. For example, the IRS is able to seize a house that you own, even if you are not currently living in it.
The IRS may also levy various types of money, such as wages, bank accounts, retirement funds, rent from tenants that live in property that you own, and accounts receivable. The IRS may contact parties holding money intended to be paid to you and intercept the money.
The IRS is not able to seize all of a taxpayer’s property. The IRS cannot seize a taxpayer’s furniture and household items, livestock, and equipment that they need to do work. Other things that the IRS may not seize include minimum exemptions for salaries, unemployment benefits, court-ordered child support payments, disability payments, pension payments, worker’s compensation benefits, and service-connected disability payments.
The Property Seizure Process
The IRS must follow a standard process when it seizes property. This process is meant to give the people whose property they are going to seize adequate notification. The property seizure process will begin when the IRS sends a Notice of Demand for Payment. This is, essentially, a tax bill. Failing to respond to the Notice of Demand for Payment and failing to set up a payment arrangement will result in the issuance of a Final Notice of Intent to Levy and Notice of Your Right to a Hearing. This notice is delivered to the taxpayer’s last known address.
After the taxpayer receives that Notice of Demand for Payment and Notice of Your Right to a Hearing, they will be given 30 days to either file an appeal or set up a payment arrangement. If the IRS doesn’t receive an answer within 30 days, they will seize the taxpayer’s assets.
There are some exemptions to this process that will allow the IRS to seize property in less than 30 days. If the IRS believes that their ability to collect taxes will be in jeopardy, they will be able to seize property without waiting 30 days. Also, the IRS will not have to wait 30 days to seize a state tax refund. Another exemption that will allow the IRS to seize property in less than 30 days is if the taxpayer is a federal contractor. However, even when these exemptions apply, the IRS is still required to send the taxpayer notice of their rights.
After the IRS sends notice of the possibility of property seizure to taxpayers, a revenue officer will be sent to the taxpayer’s home or place of employment or business and will begin to seize the taxpayer’s assets. The first things that they will seize will be items that are in public areas. Next, they will request access to private areas in the home and/or business. If the taxpayer consents, they will enter. If the taxpayer does not consent, then they will obtain a Writ of Entry. This is a legal document that gives them legal access to the taxpayer’s home and/or place of business to be able to seize property.
Responding to a Property Seizure in Roseville, CA
Following the seizure of the taxpayer’s property, the IRS will sell interest in it and will then apply the proceeds to the taxpayer’s debt. Before the IRS sells the property, they will give the taxpayer a market value determination of the property and an opportunity for the taxpayer to challenge it. Then, the agency will provide notice that the property is for sale and, after 10 days, it will go on the market. Following the sale, if there is money left over after the taxpayer’s debt has been paid off, the taxpayer will be issued a refund. In some cases, the taxpayer will be able to file a claim that will allow them to get their property back.
In many cases, the taxpayer can request a Collection Due Process hearing. During this hearing, the taxpayer will be able to make a case for why their assets should not be seized. This is an opportunity to explain that the IRS made a mistake in its determination to seize the taxpayer’s property. Following the Collection Due Process hearing, a decision will be made by the Office of Appeals.
Roseville Accountants Available for Help with IRS Seizures
If you believe that your property is at risk of being seized by the IRS, you should get in touch with the Roseville property seizure accountants that work with Cook CPA Group. The accountants that work with Cook CPA Group are able to help businesses enter into payment agreements so that they can avoid having their property seized by the IRS.