I'm always receiving questions from you about your tax issues. Sometimes, I feel like these are questions that everyone should know the answers to. So once again, I've delved into my e-mail and pulled out some questions to answer.
Can the IRS seize my car or truck?
Yes, they can. The IRS can seize anything you have of value to pay off the debt you owe them. But if you can prove to the IRS that your vehicle is necessary to get to and from work, or if the vehicle is for your business the IRS may let you keep it. However, if you have more than one vehicle, the IRS will seize all but the one.
I've already agreed to give my tax refund check to a collection agency I owe money to. I also have a debt to the IRS. Can the IRS still take my refund?
Of course they can. The thing to remember about the IRS is that they don't care about any other debts that you have. When you owe them, they consider themselves top priority. So even though you had promised to pay this collection agency with your tax refund, you will never even see the refund because the IRS will take it first.
The IRS is already garnishing my wages. Can they take my tax refund, too?
Yes, as long as you have a debt the IRS can take any tax refund you would have been entitled to, no exceptions.
The IRS is asking me for evidence to prove that my own child lived with me to claim her for a child tax credit. Can they do that?
If there is any doubt as to whether you took care of your child during the tax year, then yes the IRS can request proof. You will need to provide them with school records, doctor records, and any other documentation that shows your child lived under your roof for at least 6 months of the tax year.
If the IRS levies your bank account, how long before they lift the levy?
Once the IRS levies your bank account, the bank is required to set aside all the funds from the date of the levy for 21 days. You only have that amount of time to prove you need that money. Money that is deposited into your bank account after that date will not be set aside with the bank levy. However, the IRS can levy that account again after the 21 days has ended.
What can you do if the IRS comes to your door?
Just as with any law enforcement agency, IRS agents can't enter your home without your permission. However, IRS agents can very easily get a Writ of Entry from a Federal Judge giving them the ability to walk into your house and seize your assets. How easy is it for the IRS to get a writ of entry? They go to the Federal Judge, ask for one, and he gives it to them... just like that.
Now you have the smoking gun... Use it!
Labels: Back Taxes