Facing the seizure of your assets by the IRS can feel overwhelming, frightening, and downright confusing. The thought of losing your property or income due to tax issues can leave anyone feeling anxious and helpless. If this is happening to you right now, it’s important to know that you are not alone. The IRS can seize assets for a variety of reasons, but no matter the cause, there are steps you can take to protect yourself and your property. Understanding your rights and knowing how to fight back can make a significant difference in the outcome of your case.
Understanding IRS Asset Seizure
The IRS has the legal authority to seize assets as part of their collection efforts when you owe taxes and have failed to resolve the debt. Asset seizures are typically a last resort, used when taxpayers do not respond to notices, payment demands, or other efforts to resolve their tax liabilities. In Pennsylvania, the IRS can seize assets such as bank accounts, homes, cars, and wages. While the process can feel aggressive and intimidating, it’s crucial to remember that the IRS must follow specific legal procedures before seizing your assets.
The first step in this process usually involves the IRS sending you several notices, warning you of the impending action. This includes a Final Notice of Intent to Levy and a Notice of Your Right to a Hearing. These notices give you the opportunity to appeal the levy or seek alternatives to resolve your debt before assets are taken. It is important to take these notices seriously and respond within the required time frame. If you fail to act, the IRS will proceed with the seizure of your assets.
What to Do When You Receive an IRS Notice
If you have received notice from the IRS regarding the seizure of your assets, it’s normal to feel stressed, anxious, or even panicked. These feelings are understandable, but it’s important to take action quickly. Ignoring the situation will only make it worse, so the first thing you need to do is assess your situation. You should review all the correspondence you’ve received from the IRS to ensure that the information is accurate and that you fully understand the nature of your tax debt.
Next, you’ll want to determine whether there are any errors in the IRS’s calculations or procedures. Mistakes do happen, and if the IRS has made an error, you may be able to stop the seizure before it begins. In some cases, individuals have successfully halted an asset seizure by identifying mistakes such as the IRS not properly calculating the tax owed, applying incorrect penalties, or failing to follow required protocols.
Professionalism is the Word
I highly Recommend Gibson & Perkins. I have used their services for approximately 6 years now and been through a few cases together with very positive outcomes. Personally, I have used Paul Fellman and Walter Timby on those occasions. Both, as a team & separately these Attorneys were wonderful to work with and easily accessible to reach if I had any questions. Professionalism is the word that comes to mind to describe the firm, as a whole. Always completely prepared for any surprises that may pop up during a trial. They were well versed on all pertinent info pertaining to each case. As I client, I always felt I was an integral part of the team, not an after-thought, that had to be brought up to speed a half hour before the trial started. I could not recommend this firm and Mr. Fellman and Mr. Timby any higher.Very Satisfied
I hired Paul Fellman after speeking to several different lawyers from different law firms because he was the most sincere. Paul did an excellent job on my landlord tenant issue I had on my rental property. He was there for me from the beginning to the end of the whole ordeal. I was very satisfied and I highly recommend him and his firm.
If you believe there has been a mistake, you should contact the IRS immediately. It is important to act quickly because, once assets are seized, it can be much harder to reverse the process. In some cases, the IRS may be willing to work with you to resolve the issue or offer a payment plan or settlement.
Negotiating With the IRS
One option to avoid asset seizure or to minimize the damage is to negotiate directly with the IRS. You might be able to arrange for a payment plan, settlement, or alternative resolution that allows you to pay off your tax debt over time. The IRS often offers taxpayers the ability to set up installment agreements, which can help make your tax debt more manageable.
In some cases, you may qualify for a settlement offer in compromise, which allows you to settle your tax debt for less than what you owe. This is often a viable option for people who are facing financial hardship and cannot afford to pay their full tax debt. To qualify for a settlement offer, you must demonstrate that paying the full amount would create an undue hardship. However, it’s important to note that not everyone qualifies for an offer in compromise, and the process can be complex.
If you’re unsure about how to proceed with negotiating with the IRS, it’s a good idea to seek legal help. A lawyer can help you understand your options, assist in filing the necessary paperwork, and guide you through the negotiation process.
Related Videos
Hiring a Business Lawyer
Splitting From a Business Partner
Filing an Appeal or Requesting a Hearing
If you disagree with the IRS’s actions or believe that asset seizure is unjustified, you have the right to request a hearing with the IRS Office of Appeals. This hearing is an opportunity for you to present your case and make your arguments for why the seizure should be halted or modified.
At the hearing, you can present evidence that you believe supports your case, such as proof of financial hardship, payment arrangements, or an error in the IRS’s calculations. It’s important to be prepared for the hearing by gathering all relevant documentation, including tax returns, bank statements, and proof of income. A hearing can give you the chance to argue that the seizure should not take place or that the IRS should allow you more time to pay off your debt.
If you are granted a hearing, the IRS will review your case and decide whether to proceed with the seizure or allow you to resolve the debt in another way. In some cases, the hearing will result in the IRS suspending or even canceling the seizure of assets. However, if the IRS decides to continue with the asset seizure, you can still explore other legal options to protect your property.
Legal Options for Stopping an IRS Asset Seizure
If the IRS is moving forward with seizing your assets, there are a few legal options that may help you stop the process. One option is to file for bankruptcy. While bankruptcy does not eliminate tax debts in all cases, it can sometimes provide relief by automatically stopping the IRS from seizing assets. This is known as the automatic stay, and it temporarily halts all collection actions, including asset seizures.
However, bankruptcy can be a complicated process and is not always the best solution for everyone. It is essential to consult with a bankruptcy attorney to understand whether this option is right for you, as it may have long-term financial consequences.
Another option for halting an asset seizure is to request a temporary delay in the process. In some cases, you may be able to convince the IRS to delay the seizure if you can demonstrate that doing so would allow you to make a payment or resolve the issue in another way. You can also request a delay if there are extenuating circumstances, such as a medical emergency or other hardship, that make it difficult for you to comply with the IRS’s demands.
How Gibson and Perkins, PC Can Help
Dealing with the IRS and the threat of asset seizure can be an incredibly stressful experience, but it doesn’t have to be something you face alone. At Gibson and Perkins, PC, we understand how overwhelming it can feel to have your financial future in jeopardy. Our team is here to guide you through every step of the process, providing the legal support and knowledge you need to protect your assets.
We know that no one wants to deal with tax issues, but our firm has helped many clients successfully resolve their IRS problems, including cases involving asset seizure. We offer personalized legal representation designed to help you explore all available options, from negotiating with the IRS to filing an appeal or seeking alternative resolutions. You don’t have to navigate this complex situation by yourself—our team is here to provide the support and guidance you need.
If you’re facing the threat of IRS asset seizure in Pennsylvania, don’t wait until it’s too late. Contact Gibson and Perkins, PC today to discuss your case and find out how we can help you protect your assets and resolve your tax issues effectively. Let us help you get the fresh start you deserve.