Unfortunately, when taxpayers wonder “Can the IRS really do that?” the answer is often yes. The IRS faces very few limitations when it comes to collection abilities. However, with Packey Law Corporation working for you against the IRS, can forestall and/or discontinue many collection efforts.
The IRS can engage in any or all of the following collection efforts to collect your back taxes owed.
- Garnishing wages. The IRS may be able to garnish your wages. They can often take between 30 and 70 percent of your wages for unpaid tax debts. This includes Social Security income, but the limits are lower for that particular income source.
- Attaching levies. The IRS can levy your bank account to collect. They will freeze the bank account so that you cannot have access to the funds and then withdraw the money, often in its entirety.
- Filing liens on property. The IRS commonly files liens on real estate for taxes. This includes your home, business, and any other real property you may own. It can also include your vehicles as well. The lien will remain effective until the debt is paid or expires.
- Seizing assets. The IRS can also sometimes take assets outright. Although this collection tactic is rare, it does occasionally occur. The IRS generally only uses this approach in large tax avoidance schemes to make a statement to other taxpayers.
Although the IRS has extensive collection abilities, taxpayers still have rights. For example, there are certain requirements that the IRS must meet regarding notice and attempts at other resolutions efforts before the IRS can start collection proceedings.