Contrary to popular belief, the IRS cannot seize everything you own. The IRS will not leave you in a dark room with nothing but the clothes on your back. Although the IRS would love to, they can’t levy everything of your property (Internal Revenue Code 6334). They have to leave you the basics because it is the law. (And not because they have a heart.)
Basic needs: The IRS can not sixteen next
Clothing
Basic Clothes. This does not include luxury clothing like well-known brands. That means no expensive Louis Vuitton bags or saber-toothed tiger fur coats for the ladies.
School books
It would be difficult for the IRS to exchange them for a lot of money anyway.
Fuel and Furniture Supplies
If you travel for work (eg, you’re a street vendor), the IRS can’t garnish the extra money you’ll need for gas. The IRS also has to give you a chair to sit on.
tools for work
The IRS wants you to keep working. How else will you pay off your IRS debt?
Unemployment benefits and workers’ compensation benefits
Get back on your feet. After pay the IRS.
Railroad Retirement Act and Congressional Medal of Honor Benefits
All other pensions and retirement plans are fair game.
Most public assistance payments, such as welfare and SSI
You’d better hope the IRS doesn’t find a loophole that allows them to touch one of these payments.
may sixteen almost everything you have that you don’t consider a “basic need”. Luxury items will be the first things the IRS will sixteen. This includes cars, boats, RVs, etc. As a hit man for the IRS, my personal favorite was to target safe deposit boxes. Even family heirlooms are not safe from seizures.
Test it! It all comes down to this. If you can show that you need an item, the IRS will not seize it. But be realistic about this. You won’t be able to prove you need a yacht! But if you can show that you use your second car for your construction business, it’s unlikely it will be impounded. Defend yourself and protect everything you can.
Now you have the smoking gun… Use it!