Legal Question in Tax Law in California

Your first question is "Is there a rule about cars?" Yes, there are several rules about cars - more than can be explained in this email.

You also ask about whether or not the IRS will seize your vehicle and what kind of notice they will give you. The IRS normally must notify you before they take enforced collection actions, including seizure of assets. However, once they have given you notice (even if months ago), they are not likely going to continue to give you a separate notice prior to each new collection action.

If you have already filed an Offer in Compromise (OIC), the IRS should suspend all collection activities during the review of your offer. If you have not yet filed your OIC, you will want to get that done as soon as possible.

The way the OIC works is the IRS expects you to pay the value of your vehicle in your offer amount. For valuation purposes, they look at the "quick sale" value or 80%. So, in other words, they do not come and get your car, or even expect you to actually sell it. They just require that you include the value of the vehicle in your offer amount (assuming the offer is accepted).

Feel free to call me if you have any further questions, or if you would like professional help with your OIC.

John Wetenkamp

Attorney at Law

(916) 452-7033