If the IRS has levied and seized your property, you probably have many questions about how this works and whether you can recover your property. In some cases, you can recover your property if you act quickly enough, make alternate payment arrangements, or you can show the property seizure creates an economic hardship.

What Happens with Levied Property?

Once the IRS seizes your property with a levy, such as a home or a car, they will sell your interest in it and apply anything left over, after the costs of the sale, to your tax debt. Before selling your property, the IRS will:

• Calculate a minimum bid price, 
• Provide you with a copy of the calculation and allow you to appeal the fair market value,
• Provide notice of the sale to the public through newspapers or other public notices, and
• Commence with a public sale after at least ten days.

If money remains after satisfying your tax bill and the costs associated with seizing and selling the property, the IRS will tell you how to get a refund.

Recovering Your Levied Property

If the IRS seizes your property, you should contact them immediately and request a seizure release. The IRS may release the property if you make alternate arrangements to satisfy your tax bill. You may also request a seizure release on economic hardship grounds. For example, if the IRS seized your home, leaving you with nowhere to live and you don't have the income or assets to cover your basic needs. You can appeal if the IRS denies your request for a seizure you release. The deadlines for appeal vary depending on where you are in the lien, levy, and seizure process, but you should do so as soon as possible. 

You Need Experienced Tax Guidance

If you're facing the seizure of property under an IRS levy, whether business or personal property, it's time to get an experienced tax professional on your side. You need the guidance and advice of a skilled tax attorney. If you need help, call Senior Partner, Tax Controversy Attorney, and former IRS attorney Brandon A. Keim at (602) 200-7399 or contact him online to discuss your options.