How to Respond If You Receive An IRS Notice of Seizure

Receiving an IRS Notice of Seizure can be an unnerving and confusing event in any individual's life. Understanding your rights under the IRS Restructuring and Reform Act of 1998, as well as how to respond, is important for those in receipt of this asset liquidation notice to prevent unnecessary liquidation of real assets and property.

Things You'll Need

• Tax attorney
• IRS forms
• A computer with Internet access

Instructions

Understanding an IRS Notice of Seizure

1. Consider that failure to pay taxes will result in a Notice of Seizure under United States Code 6631, which announces that your property has been seized for nonpayment of Internal Revenue taxes and will be sold pursuant to U.S. code 6335 at public auction for collection of monies owed.

2. Enlist the help of an attorney if you do not understand the response and appeal process. Laws pertaining to the IRS are complicated and dense, usually revealing more rights than you realize you have in confusing language you may not be able to decipher.

3. Read an enrolled agent's take on IRS seizure for plain, easy to understand language regarding how the IRS Notice of Seizure works (see Resources below).

4. Understand your rights before surrendering any real property to the IRS. Frequently the IRS will not seize property in which you have only a small percentage interest, especially primary residences and automobiles (see Resources below).

Know Your Legal Rights When The IRS Issues A Notice of Seizure

1. File a written request for acknowledgment of an invalid tax lien under IRC 6323 if you believe you are innocent. Provide documentation and evidence.

2. Notify the IRS immediately if the list of seized property is not yours, and provide verification that the property is not your "right, title and interest."

3. File the Application for Taxpayer Assistance Order, Form 911, with the IRS in order to request pre-seizure assistance or payment plans. You may be able to work out a monthly payment plan in lieu of seizure.

4. Use Form 9423 for appealing IRS collection or Form 12153 to request a collection of due process hearing.

Tips & Warnings

• File your response within 10 days of receiving a Notice of Seizure from the IRS if you wish to appeal, or risk losing many of your legal rights.

• Look for an official IRS Seal and a complete listing of all securities scheduled for seizure on the Certificate of Official record you receive. If you receive a notice without both, the seizure notice is not legal.