Receiving a letter from the Internal Revenue Services (IRS) is hardly ever a pleasant experience. While in most cases a letter from the IRS will indicate that you need to provide further paperwork to supplement your tax filings, the organization is also notorious for sending out letters where the content of said letter indicates that you owe the United States Treasury money.
If you find yourself on the wrong side of the IRS, it is imperative that you sort your debt out as soon as possible. It is estimated that average IRS levy (seizure) is roughly 1,600 most via bank accounts and wages.
Furthermore, the IRS also has the authority to dip into your bank account on multiple occasions until the debt is paid off, meaning that you suddenly find yourself struggling to make ends meet.
However, it is important to note that this is a last ditch measure and the IRS will provide several warnings before hand about your due.
Federal Tax Liens
A Federal Tax Lien is a claim against you that arises by law whenever you have an outstanding debt amount with the United States treasury. It is important to avoid these claim, as a lien will have an adverse effect on your credit rating.
Furthermore it is also important to remember that declaring bankruptcy does not void the lien.
Exempt Assets
Luckily there are certain assets that the IRS can’t seize in the worst case scenario. These items include basic necessities such as clothes (luxury and designer items are not protected), school books, fuel,…
