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Steps the IRS Must Take Before Seizing Your Assets

Steps the IRS Must Take Before Seizing Your Assets

The IRS has powers far beyond what most creditors have. However, they still have to follow certain procedures before levying your bank account or garnishing your wages.

Here are some of the steps the IRS must take before seizing your assets.

Assess the Tax

This step is an official determination that you owe tax. When you file a return, tax is assessed, but it can also be assessed other ways, such as after a tax audit.

If you receive a Notice of Deficiency, it’s telling you that the IRS is assessing additional tax against you. A Substitute for Return can also be filed by the IRS to assess tax when you refuse to file your tax return.

The IRS generally has three years from the return’s due date to assess tax, but this period can be extended in certain situations.

Send You a Bill

The IRS will send at least one notice asking you to pay your tax bill. The notice will tell you how much you owe and how long you have to send payment.

Further down the notice, you’ll see information about payment plans and other options. However, there are also more tax resolution strategies that the notice doesn’t tell you about.

You’ll likely receive more than one bill from the IRS, and the interest and penalties will keep accruing each month you don’t pay.

Collection Due Process Notice

The Collection Due Process (CDP) Notice is your last chance to stop an IRS levy. It contains several important pieces of information:

  • The IRS is about to levy your assets.
  • You have the right to request a hearing before the levy takes place.
  • You have 30 days to request the CDP hearing.
  • You must request the hearing in writing.

You still have several options at this point that will allow you to avoid the levy or delay it while you figure things out. Contact a tax attorney right away if you receive a CDP notice.

If you don’t respond within 30 days, the IRS can move forward with the levy. The IRS doesn’t need to get a court judgment like most other creditors. They will send a notice to your bank or employer ordering them to comply with the levy.

Be proactive and contact a tax resolution attorney before the IRS has the chance to seize your assets.

The Gartzman Law Firm can help you assert your Collection Due Process rights and protect your assets from an IRS levy. Use our contact form to request a consultation with an Atlanta tax resolution attorney.