Asset Seizure and IRS Collection Actions

Is the IRS Going to Confiscate Your Home, Your Car, and Even Your Retirement Accounts?

When tax liabilities remain unresolved over an extended period, the IRS has broad collection authority under federal law. In certain circumstances, this authority may include the seizure of assets such as real property, vehicles, bank accounts, and other valuables in order to satisfy outstanding tax debt.

Before the IRS can take enforcement action, it must follow specific procedural steps. These generally include issuing a series of written notices, providing an opportunity to resolve the balance, and sending a final notice of intent to levy. At that stage, taxpayers may have the right to request a Collection Due Process (CDP) hearing, which can temporarily halt enforcement while the matter is reviewed.

How and when these rights apply depends on timing, filing status, and the taxpayer’s overall compliance history. Once enforcement activity begins, options may become more limited, which is why understanding the process early is critical.