Collection Methods of the IRS – Part 2

Last week I mentioned several methods of collection.  This week I will discuss seizures in more detail.  If a taxpayer still does not pay after a levy, the case will then be assigned to a particular revenue collection

 

officer, who will contact the taxpayer or even visit her home or business. Can the IRS seize a car or home and sell it?  Under the right set of circumstances, yes they can!  In the case of a business, the IRS can seize the assets of the business, such as equipment, trucks, etc. and actually shut the business down.  The seizure process is a legal process, so IRS attorneys become involved and the legal action is in the nature of a foreclosure, i.e. the IRS is foreclosing on its tax lien.  Therefore from the beginning of the seizure until the end can take 6 months to a year.  During that time the taxpayer may be able to sell the property for more than the IRS would get in a foreclosure auction.