Rreceiving a letter from the Internal Revenue Services (IRS) is almost never a pleasant experience. While in most cases a letter from the IRS will indicate that you need to provide additional documents to complete your tax returns, the organization has also been known to send letters where the content of said letter indicates that you must do so. United States Treasury money.
If you find yourself on the wrong side of the IRS, it is imperative that you sort out your debt as soon as possible. The average IRS levy (seizure) is estimated to be around $1,600, mostly through bank accounts and wages.
Plus, the IRS also has the power to dip into your bank account repeatedly until the debt is paid off, which means you suddenly find yourself struggling to make ends meet.
However, it is important to note that this is a measure of last resort and the IRS will provide several warnings in advance regarding your owed.
Federal tax privileges
A federal tax lien is a claim against you that arises by law whenever you have an unpaid amount of debt with the US Treasury. It is important to avoid these claims because a lien will have a negative effect on your credit rating.
Additionally, it is also important to remember that declaring bankruptcy does not void the lien.
Exempt assets
Fortunately, there are certain assets that the IRS cannot seize in the worst case. These items include basic necessities such as clothing (luxury and designer items are not covered), textbooks, fuel, groceries, furniture and personal effects up to $7,700, between others.
It is also important to note that the IRS will not collect 85% of your unemployment benefits.
Finally, even if not ranked on the previous list, the IRS is generally discouraged from seizing your pensions and homes.
Cars can also be considered prohibited, but you will need to convince the collector that your car is a necessity for the job.