Tax Tip of the Week
900 N. Kings Highway, Cherry Hill, New Jersey 08034
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Fax: 856.667.3652
For the week of
August 14, 2000
There are limits on what the IRS can take in payment of tax
If a taxpayer fails to pay tax, the amount due becomes a lien
in favor of the United States upon all the property of the taxpayer. This includes all real estate and personal
property including an after-acquired interest in property.
Once a lien is established, it remains in force until the tax is paid or the lien becomes unenforceable due to
the passage of time. If ten years have passed and the IRS has not made attempts to collect the tax, the lien will
expire.
Here are some of the items which the IRS cannot take to satisfy a tax lien:
- tools of your trade, business, or profession
- furniture and personal effects
- clothing and school books
- unemployment benefits
- certain retirement benefits
- payments such as worker's compensation, social security benefits, child support, or welfare payments
Financial institutions are required to hold your funds for
21 days after getting notice of a levy against you to allow you time to notify the IRS of any errors.
The IRS lien and levy procedures can be very intimidating to the average taxpayer. If you need information about
an IRS lien or if we can be of assistance in any of your tax matters, please contact us. You don't need to be an
existing client of our firm to get our assistance.
Click here to view previous tax tips.
"Tax Tips" are published weekly to
provide useful tax information. Return to this site every week for helpful tax-cutting suggestions, tax reminders,
and current tax information.
The information contained in this site is of a general nature and should not be acted upon in your specific situation
without further details and/or professional assistance.
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