Collection Methods of the IRS – Part 2
- December 14, 2011
- David Greene
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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.