Tax Dictionary – Seize Assets
The IRS may levy (seize) assets such as wages, bank accounts, social security benefits, and retirement income. The IRS also may seize your property (including your car, boat, or real estate) and sell the property to satisfy the tax debt. In addition, any future federal tax refunds or state income tax refunds that you’re due may be seized and applied to your federal tax liability.
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If don’t pay the full tax balance shown on your federal income tax return by the due date, the IRS will send you increasingly urgent notices requesting payment.
If the IRS doesn’t get a response, the IRS can begin enforced collection actions, such as issuing a levy. A levy takes a portion of your wages or the balance in your bank account. The IRS can also take your state tax refund and future IRS tax refunds until the balance is paid off.
If you own a business, the IRS can take payments due to you from customers. To avoid a levy, contact the IRS to get into a payment agreement before the due date on your Final Notice of Intent to Levy.
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