When your business is under pressure from the IRS, the stress of wondering what the IRS can and will take becomes a large weight to bear. At the Key Tax Group, we provide our clients with some of the best tax relief services we can provide. If your business is underwater with the IRS, here is what the IRS cannot touch and take from you. If you are struggling with pressure from the IRS, reach out to the Key Tax Group today!
When the IRS Is Entitled to Your Property
Before we get to what the IRS cannot take, we want to talk about the conditions under which the IRS is entitled to collateral. There are a wide variety of conditions under which the IRS can start taking your money and property. However, in general, if you owe money to the IRS and have received several notices attempting to collect payment for that debt, the IRS may start enacting levies (this takes anywhere from 11-52 weeks). After lien and levies, the IRS is able to start taking property as they assume your financial resources are not large enough to pay the debt. If you are in IRS tax debt, here are the things they cannot take from you.
The first thing the IRS cannot take from you is living supplies. So, things like groceries, utensils, and fuel are things that the IRS cannot touch. If you are concerned about the IRS taking the things you need to survive and provide for your family, there is no need to worry about the IRS taking your food, clothing, or other things like schoolbooks. If you have any questions regarding what the IRS can touch and take from you, contact the professional tax attorneys at Key Tax Group.
Certain Monetary Sources
Believe it or not, there are several monetary sources that the IRS cannot touch. While they are able to take a certain amount of your paycheck if you fail to pay your tax debts, they cannot take from financial sources like unemployment benefits, railroad and military Pension, worker’s compensation, disability benefits, and similar financial resources. So, if you have experienced pressure from the IRS because of a disability pressuring you financially, you don’t have to worry about the IRS making a move on your disability benefits.
Other Assets — Including Your Home
There are several other assets that you do not have to worry about the IRS touching including work tools valued at or below $3520, furniture valued at or below $7720, any asset with no equitable value, personal effects that do not exceed $6,250 in value, and, finally, your personal residence if you owe less than $5,000. That’s right, if you owe less than $5,000, the IRS cannot take your home. However, even if you do owe more than $5,000, there is an extensive process for the IRS to be able to take your personal residence, meaning you do not have to be worried about the IRS showing up, unannounced, to take your home.
If you owe money to the IRS, the stress of not knowing what they can take from you is a lot to bear. Hopefully, this blog has helped you to understand more of what the IRS can and cannot take. If you are in financial trouble and in need of tax relief services, reach out to the tax attorneys at the Key Tax Group for help regarding your tax situation. We are a full-service tax resolution firm committed to helping you with your tax situation. Reach out to us today to find out how we can help and get your free consultation today!