Legal Question in Tax Law in California
Siezure of House by IRS
i owe approx. $55,000 in personal income taxes from 2002 and 2003. my income (self-employed) has plummeted from over $200 K in 2002, to almost nothing in 2004. i have been talking regularly to IRS collection people, generally polite on both sides, and have sent all info they've requested. they have filed lien against my house, which i did not contest. now, however, their tone has sort of changed, and they have begun to threaten to sieze both my bank account and house. i have a very good chance that my income is going to skyrocket again during first quarter of 2005, due to pending contract - which i've told the IRS - but of course, this is no guarentee. but, personally, i'm sure i can pay the whole thing off during next 12 months. my questions are:
1. is there any way i can just stall them altogether for 4 -6 weeks?
2. isn't there some kind of rule that limits their siezure of a residence?
3 Answers from Attorneys
Re: Siezure of House by IRS
While seizing your house is not likely, they can and will seize your bank accounts. You should get professional help immediately to deal with them. When it gets to a collection level, they begin getting a little harder with you.
Re: Siezure of House by IRS
There are procedures that must be followed to levy on your residence.
SEE
http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=browse_usc&docid=Cite:+26USC6334
IRM 5.17.3.1.3.7 (10-31-2000)
Seizure of a Principal Residence
http://www.irs.gov/irm/part5/ch16s04.html
Unfortunately, as polite as tax authorities may be, they are not acting in your interest. Under the circumstance of your situation I always advise that the taxpayer have no contact of any kind with the government. All information and negotiation should be conducted through a tax representative with experience in these matters. Once you have been in contact with the government and they know where your assets and income are, they will demand full payment or proceed to take direct action (unless you qualify for an installment agreement or an offer in compromise).
Re: Siezure of House by IRS
to put it simply, yes and yes.
JOEL SELIK
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