Tips for Protecting Your Assets from an IRS Levy

If you owe the IRS for back taxes, and they have attempted to contact you numerous times to no effect, there's a good chance that they may decide to levy your assets. Once the IRS has placed a levy on your assets, they can begin to try to seize them in order to fulfill the back taxes owed. This article will explore some of the ways that you can prevent the IRS from taking your assets.

If you have already caught wind that the IRS may begin the process to seize your assets, the first option would be to simply transfer them into someone else's name. If you wait until the levy is in place to do this, the IRS can still legally take that asset. Keep in mind that if you transfer your assets, you are technically giving them to someone else and legally you will have no more control over them. So if you are using this option, make sure that it is someone that you can trust. In certain cases the IRS may still be able to prove that you transferred the assets in an effort to prevent collection actions, so be careful.

Another effective method is to transfer your financial accounts. Doing this will prevent the IRS from going into your bank account and taking money directly from it. The only way that the IRS can know about your bank accounts is if you filed a tax return and the return shows the bank account that your money was paid into. Other than that, the IRS does not have access to any banks computers, so once you move an account, they will not be able to see it. However if the IRS does find your bank account, they will be able to put a freeze on any accounts that they find, meaning that you will no longer have access to that money.

Keep your assets from being seen by the IRS. Such items as boats, cars, motor homes motorcycles ect. If they cannot see them, they can't take them. Keep in mind that it is illegal to hide things from the IRS, and the last tip below is the preferred method of avoiding an IRS levy.

It is never a good idea to run from the IRS and it is illegal to attempt to hide your assets from them. Hiding your assets from the IRS is not the easiest thing in the world to do and more likely than not, they will eventually find them. At the very least the methods mentioned in this article can be used not so much to get around the IRS, but to buy yourself more time to get your tax issues resolved. If you owe money to the IRS and are not able to pay the full amount, the best idea is to give them a call and explain your situation to them in detail. More likely than not they will be able to come up with a plan that both of you will be able to deal with.