IRS Seizure Limitations

Household furniture is exempt from an IRS seizure.

An IRS seizure, also called a levy, is the seizure of property to pay off a tax debt. The IRS has the legal right to seize and sell personal property and levy bank accounts or dividends. There are limitations to what the IRS can seize.

Significance

According to Cornell University Law School, clothing, personal effects in the household, fuel, food, furniture, undelivered mail, arms for personal use, livestock and poultry not exceeding $6,250 in value are exempt from seizure. Also excluded are textbooks for school, and books and tools of a business or profession not exceeding $3,125.

Considerations

Unemployment benefits, workers' compensation payments, and annuity or pensions under the Railroad Retirement Act or Railroad Unemployment Insurance Act cannot be seized. Army, Navy, Air Force, and Coast Guard Medal of Honor roll pensions are exempt. Child support for minor children and certain disability payments, such as veteran's benefits, and certain public assistance payments, such as income for the aged, blind or disabled are exempt.

Exceptions

Property or a residence used by the taxpayer, or a residence or property owned by the taxpayer and used by another individual as a residence, is exempt if the levy does not exceed $5,000. Weekly wages, salary or other income are excluded from seizure.

References

• Internal Revenue Service: Levy
• Cornell University Law School: Property Exempt from Levy

Resources

• Alcohol and Tobacco Tax and Trade Bureau: Notice to Delinquent Taxpayers