What happens after my property is seized?

If the IRS seizes your house or other property, the IRS will sell your interest in the property and apply the proceeds (after the costs of the sale) to your tax debt. Prior to selling your property, the IRS will calculate a minimum bid price. The IRS will also provide you with a copy of the calculation and give you an opportunity to challenge the fair market value determination. The IRS will then provide you with the notice of sale and announce the pending sale to the public, usually through local newspapers or flyers posted in public places. After giving public notice, the IRS will generally wait at least 10 days before selling your property. Money from the sale pays for the cost of seizing and selling the property and, finally, your tax debt. If there’s money left over from the sale after paying off your tax debt, the IRS will tell you how to get a refund.

How do I get my seized property back?

Contact Bakersfield Tax Relief immediately to resolve your tax liability and request a seizure release. The IRS can also release the seizure if it determines that the seizure is causing an immediate economic hardship. If the IRS denies your request to release the seizure, you may appeal this decision. You may appeal before or after the IRS seizes and sells your vehicle(s), real estate, or other property. After the seizure proceeds have been sent to the IRS, you may file a claim to have them returned to you. You may also appeal the denial by the IRS of your request to have seized property returned to you. 

The IRS is required to release a seizure if it determines that:

  • You paid the amount you owe,

  • The period for collection ended prior to the seizure being issued,

  • Releasing the seizure will help you pay your taxes,

  • You entered into an Installment Agreement and the terms of the agreement do not allow the seizure to continue,

  • The seizure creates an economic hardship, meaning the IRS has determined the seizure prevents you from meeting basic, reasonable living expenses, or

  • The value of the property is more than the amount owed and releasing the seizure will not hinder our ability to collect the amount owed.

Please note: The release of a seizure does not mean you don’t have to pay the balance due. You must still arrange with the IRS to resolve your tax debt or a seizure may be reissued.

What actions must the Internal Revenue Service take before a levy can be issued?

The IRS will usually levy only after these three requirements are met:

  • The IRS assessed the tax and sent you a Notice and Demand for Payment (a tax bill);

  • You neglected or refused to pay the tax; and

  • The IRS sent you a Final Notice of Intent to Levy and Notice of Your Right to A Hearing (levy notice) at least 30 days before the levy. The IRS may give you this notice in person, leave it at your home or your usual place of business, or send it to your last known address by certified or registered mail, return receipt requested. Please note: if the IRS levies your state tax refund, you may receive a Notice of Levy on Your State Tax Refund, Notice of Your Right to Hearing after the levy.

Bakersfield Tax Relief
Can Help You
  • Stop Property Seizures

  • Release Property Seizures in Process

  • Negotiate Tax Resolution Plan With Taxing Authorities  

  • Respond to Tax Seizure Notices

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