What Can The IRS Really Seize?

from EA Journal: www.NAEA.org
If the IRS is in a position to levy or seize, it is important to know what is at risk. No matter what the IRS may tell you or your representative or what you may have heard, it is very unlikely the IRS will levy on a house, car, furniture, or equipment. The assets that you may be the most concerned about-your "stuff" are the items the IRS is least likely to take. This is important to know in negotiating with the IRS.

In 2009, the IRS made 581 seizures of "hard" assets such as houses, cars and other personal property. By comparison, in the same year the IRS sent out almost 3,500,000 levies on "soft" assets, such as bank accounts and wages.

IRS attempts to seize "hard" assets are serious, make no mistake about it. But the IRS is clearly more intent on tying up cash.

The reason for the focus on cash, not personal property, are in the Internal Revenue Code (IRC) and the Internal Revenue Manual. Both provide that if an asset-for instance a house- lacks equity, the IRS is prevented from seizing it. This eliminates a vast majority of potential seizures. Even if an asset has equity, it cannot be taken if it is listed as exempt in the IRC and is protected from the IRS as a matter of public policy.