How to Hold On to Your Assets
The likelihood of asset seizure is huge if you have problems with the Internal Revenue Service (IRS). The bureau can take your assets if they want payment. You may not have a lot left when they're finished with you if you owe the bureau a lot of back taxes. The IRS usually uses the following three factors in deciding what assets to take: The property required to pay the tax vs. the tax liability
How easy it is to seize and get rid of the assets
How valuable the properties are to the taxpayer You may be threatened with asset seizure by the IRS. They do this so you can choose to sell your assets to cover your back taxes. The properties normally taken by the IRS are these: Bank accounts
Automobiles, boats, airplanes, and other vehicles
Life insurance with cash equivalent
Receivables
Stocks and bonds
Salaries
Collectibles
Owned buildings, vacation houses, and other real estate
Pensions, IRAs and Keoghs
Your house So, what's left? The assets that the IRS can't seize are: Clothing, excluding fur coats and other luxury items
Fuel, furniture, personal effects, and provisions up to $6,250
Books and tools of trade amounting to $3125
School books
Unemployment pension
Worker's compensation
Money from public assistance
Benefits received from job training
Undelivered mail
Court-ordered child support
Special Treasury fund deposits by members of the Public Health Service and the armed forces who are working overseas.
Disability payments
Minimum exemption amount from other income, salary, and wages
Public assistance payments from welfare or SSI It's better to avoid asset seizure, but what if you have already been served with a notice from the IRS? The release process is easier with guidance from our firm. Your taxes will have to be fully paid, or you can offer an installment deal with the IRS, prove a hardship, or prove that the value of the asset taken exceeded that of what you owed.
