IRS Asset Seizure

Protect your property from federal tax enforcement by securing an IRS seizure release and reclaiming what’s yours through strategic legal defense.

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What Assets Can the IRS Seize?

The IRS can seize a wide range of assets to satisfy unpaid taxes, including bank accounts, wages, real estate, vehicles, and business property. Certain personal items and essential tools may be exempt. Understanding what assets the IRS can legally take is critical to protecting your property and rights.

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Expert Tax Attorney Services for IRS Seized Property

At J David Tax Law, our experienced asset seizure attorneys specialize in securing the release of IRS-seized assets, helping taxpayers regain control of their property. With four decades of collective experience, we have successfully represented clients across all 50 states, offering strategic legal solutions to stop IRS enforcement actions and recover seized assets.

Understand Your Rights and
Legal Options To Stop IRS Asset Seizure

When taxpayers owe outstanding tax debt, the IRS seize property, including bank accounts, wages, real estate, and other property. Our legal team leverages key provisionsInternal Revenue Code (I.R.C.) provisions to help protect your assets from IRS seizure. Here’s what you need to know about your rights:

Right to Notice and Hearing Before Seizure (I.R.C. § 6330)

Before the IRS can seize your assets, they must provide a formal IRS seizure notice, also called a Notice of Intent to Levy, allowing you to challenge the action. You have the right to request a Collection Due Process (CDP) hearing, where you can dispute the levy, propose an alternative resolution, or present evidence of financial hardship. The seizure may be invalid if the IRS does not follow proper notification procedures. Our tax attorneys can file an appeal to stop the IRS levy and protect your assets.

The IRS is prohibited from seizing assets while you have a pending tax relief application, such as an Installment Agreement or Offer in Compromise. Additionally, the IRS must conduct a thorough investigation before proceeding with a seizure. If these requirements are unmet, our firm can challenge the seizure and work to release it.

Certain assets are legally protected from IRS seizure, including necessary household items, business tools, and a portion of wages or Social Security benefits. If the IRS intends to seize a primary residence, they must obtain approval from a U.S. District Court judge or magistrate (judicial officer). Our tax attorneys can help determine whether your assets qualify for protection and take legal action if necessary.

If an IRS seizure is wrongful or causes severe financial hardship, you have the right to request a levy release. Hardship occurs when losing an asset makes it impossible to cover essential living expenses, such as rent, food, or medical costs. Additionally, if the tax debt has been paid or the IRS made a procedural error, you may be eligible for asset recovery. Our IRS levy attorney can file the necessary claims and advocate for the return of seized property.

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How We Fight IRS Seizures and Protect Your Assets

Free IRS Tax Consultation

Free Tax Consultation

We start with a free consultation to assess your case and determine the best legal strategy. If urgent, we take immediate steps to release IRS seized property.

Free Tax Relief Consultation
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Filing Appeals

Our levy attorneys file CDP hearings, CAP requests, and hardship claims to dispute wrongful IRS property seizures and fight for asset recovery.

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Negotiation & Settlement

We negotiate Installment Agreements, Offers in Compromise, and CNC status to secure a levy release and resolve tax debt.

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Asset Recovery

Once assets are released, our focus shifts to preventing future issues like property seized for unpaid taxes while maintaining financial security.

Free IRS Tax Consultation

Free Tax Consultation

We start with a free consultation to assess your case and determine the best legal strategy. If urgent, we take immediate steps to release IRS seized property.

Free Tax Relief Consultation
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Filing Appeals

Our levy attorneys file CDP hearings, CAP requests, and hardship claims to dispute wrongful IRS property seizures and fight for asset recovery.

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Negotiation & Settlement

We negotiate Installment Agreements, Offers in Compromise, and CNC status to secure a levy release and resolve tax debt.

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Asset Recovery

Once assets are released, our focus shifts to preventing future issues like property seized for unpaid taxes while maintaining financial security.

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IRS asset seizures can be devastating, but with the right legal strategy, they can be reversed.

How to Stop the IRS from Seizing Property?

You can stop the IRS from seizing property by taking immediate action to resolve your tax debt or challenging the seizure before it happens. Common solutions include requesting a Collection Due Process (CDP) hearing, negotiating an Installment Agreement, submitting an Offer in Compromise, or proving financial hardship. Acting quickly is critical — once the IRS moves forward, reversing the process becomes more difficult without an experienced IRS attorney.

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What Are Your Options If an IRS Asset Seizure Release Is Denied?

If your request for an IRS asset seizure release is denied, you still have legal avenues to challenge the seizure and recover your assets. The IRS may refuse a release if they believe the seizure was justified, if financial hardship was not proven, or if they determine that alternative collection methods are not viable. 

File an Appeal Through the Collection Appeals Program (CAP)

You can immediately escalate the matter through the Collection Appeals Program (CAP) if the IRS denies your release request. CAP provides a fast-track review of collection actions, unlike other appeal processes,

including wrongful or excessive IRS property seizures. Our tax attorneys can submit a strong legal argument demonstrating IRS errors, procedural violations, or undue hardship to push for a reversal.

Request a Collection Due Process (CDP) Hearing

You may still be eligible if you have not already requested a Collection Due Process (CDP) hearing. A CDP hearing allows you to present a case before the IRS Office of Appeals, challenging the seizure

and proposing alternatives such as an Installment Agreement or Offer in Compromise. If the IRS violated any procedural requirements under I.R.C. § 6330, this hearing provides an opportunity to demand a release.

Prove Financial Hardship or Exempt Asset Status

The IRS is required to release a seizure if it causes significant financial hardship under I.R.C. § 6343(a)(1)(D). If your initial request was denied, you may need to provide additional documentation,

such as Form 433-A or Form 433-B, to demonstrate that the IRS property seizure prevents you from meeting basic living expenses. Additionally, some assets, such as personal tools of trade and a portion of wages, may be exempt from seizure under I.R.C. § 6334.

Negotiate a New Resolution with the IRS

If a direct release is denied, you may still be able to negotiate an alternative resolution, such as a partial payment installment agreement or a temporary suspension of collections through Currently Not Collectible (CNC) status.

Our tax lawyers can assess your financial situation and advocate for the best strategy to halt further enforcement actions.

Take Legal Action in Tax Court

 If all administrative remedies fail, taxpayers may have the option to challenge the seizure in Tax Court or seek relief through the Taxpayer Advocate Service (TAS).

Litigation may be necessary if the IRS violated your rights, failed to follow proper procedures, or refused to consider valid financial hardship claims. Our legal team can evaluate the viability of a lawsuit or federal court intervention to protect your assets.

Frequently Asked Questions

Your Tax Relief Questions, Answered

What assets can the IRS seize?

The IRS can seize bank accounts, wages, real estate, vehicles, business assets, and valuable personal property to satisfy unpaid taxes. Certain items, such as necessary household goods, clothing, and tools of the trade, may be exempt under I.R.C. § 6334. Legal representation can identify exempt assets and fight to recover wrongfully seized property.

The IRS may move to seize assets after issuing an asset seizure Notice and Demand for Payment, followed by a Final Notice of Intent to Levy, giving you 30 days to respond. Timeframes can vary based on your case and collection actions already in progress. Acting immediately with an attorney can stop or delay seizure proceedings while resolving your tax debt.

When the IRS seizes property, they take legal possession and may sell it to apply proceeds toward your tax debt. This can include freezing bank accounts, garnishing wages, or liquidating real estate and other valuables. Some assets are protected under I.R.C. § 6334. An experienced tax attorney can challenge improper seizures and negotiate alternatives.

The IRS can seize a primary residence only with the U.S. District Court approval, but they may take rental or investment properties without court order. Before seizing a home, the IRS must issue notices and allow time for appeal. Legal counsel can challenge the seizure, prove hardship, or negotiate a resolution to protect your property rights.

At J. David Tax Law, we take immediate action to stop the seizure of assets and protect your property. Our tax lawyers file appeals, hardship claims (I.R.C. § 6343), and legal challenges to reverse wrongful seizures. We negotiate Installment Agreements, Offers in Compromise, and CNC status to prevent future enforcement. If the IRS violated procedures or seized exempt assets, we fight for a release. Let Us Defend Your Assets and Stop IRS Seizures Today!

The IRS has the authority to seize property to satisfy unpaid tax debts, but such actions are relatively rare. In Fiscal Year 2018, the IRS conducted 275 property seizures, a significant decrease from earlier years. By comparison, in Fiscal Year 2012, there were 733 seizures.

This decline reflects the IRS’s preference for less intrusive collection methods, such as liens and levies, over direct property seizures. However, the IRS may proceed with property seizure when tax debt remains unpaid despite multiple collection notices. If you have received a collection notice, now is the critical time to act. Book your free tax consultation today to protect your assets.

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