Protect Assets from IRS Levy

How To Protect Your Assets From The IRS

Depending upon what assets you have, there are several ways to avoid having those assets seized by the IRS. The best ways to prevent seizure of assets is to not legally own the assets anymore, don't let the IRS know about the assets, or show to the IRS that it is not financially worth it to them to seize certain assets. The following are common ways to protecting some of your assets from IRS seizure. Please note that there may be a fine line between the legality of these items and it is best to consult a tax attorney or tax professional when dealing with these issues.

Transfer Ownership of Your Assets

A transfer of ownership can prevent the IRS from seizing the assets. If you plan on giving away or transferring assets, this must be done before you actually receive the intent to levy because if the assets are transferred after the notice is received the IRS can legally take seize them. Even if the assets were transferred before the IRS filed the intent to levy, they may still be able to go after them as well because the IRS sees it that you made this person, corporation, or trust the nominee for this asset and they will still be able to pursue this asset. Note, this will slow the IRS down from taking assets and can buy you some extra time to set up an agreement with the IRS to release the levy.



Getting the IRS to Claim Certain Assets as Exempt

If you can prove to the IRS that the asset they are trying to seize would not be worth it for them to seize then the item can be claimed as exempt and the IRS will no longer go after that certain asset. Typically, you will have to prove that the effort it would take to sell the asset would actually cost more than the asset would eventually sell for. You can also get an asset to be claimed as exempt if you are able to show that the asset will prevent you from working. Many times the IRS may try to seize assets such as cars, trucks, tractors, etc, that may be required for you to do your job and earn money. If you can show the IRS collector that this asset is required for you to earn money, it is likely that you can get an exemption on that asset.



Move Your Financial Accounts to Places the IRS Doesn't Know You Have Money

The IRS only knows about the financial accounts that you have earned interest on and were required to file a Form 1099. If you move the assets out of the account that you have filed the 1099 from, this makes it much more difficult for the IRS to find those items.



Don't Tell the IRS About Your Assets

You must be careful when using this method. You are not required to tell the IRS about all your assets and the location of them if they do not ask. If they do not know about the asset, then they will not seize it. It is against the law to like to the IRS about assets though. Keep in mind that the IRS will search through public records and try to find any assets that they know you have. When the IRS begins asking questions about assets owned, it is a good idea to speak to a tax professional first. If there are assets that the IRS may not know about and you don't want them to know about them, you should try to keep them out of view by not keeping them on your immediate property so it makes it harder for the IRS to discover these assets.

Tax Professional
Tax Professionals can be the best option for many people when dealing with complex collection issues such as a tax levy. Tax professionals can help ensure the IRS will not collect from you anymore and can release a tax levy. Request a free consultation to get your options from a tax professional.

Tax Levy
Settle IRS back taxes for a fraction of what is owed if you can prove you meet strict IRS specifications.

Offer In Compromise
Settle IRS back taxes for a fraction of what is owed if you can prove you meet strict IRS specifications.

Payment Plans
Setting up a payment plan with the IRS can sometimes be the easiest solution to dealing with back taxes. See what payment plan fits your situation the best.

Currently Not Collectible
Prove to the IRS that you do not have the means to pay your back taxes with your current financial standing. Hold of IRS until you can pay or until statute of limitations expires.