John Rich Posted October 22, 2009 Share Posted October 22, 2009 I owe the IRS $3,000 from 2006, during a time when I was unemployed. I don't have the money to pay it off, or even to make reasonable installment payments. They have sent me a certified letter saying that they "intend to levy on certain assets". What exactly does that mean? Are they likely to tow away my car and sell it to satisfy the debt? Or will they just put a lien on my house so that when it's sold at some point in the future they get their cut out of the profits? I'm wondering if I should worry about my car disappearing in the middle of the night. I really don't have have any other assets worth anything other than the house and the car. And sale of the car would barely cover the debt - it's not worth much more than what I owe on it. Can anyone enlighten me on what actions I can expect from the IRS here? Link to comment Share on other sites More sharing options...
sevfiv Posted October 22, 2009 Share Posted October 22, 2009 Is there any way you can get a personal loan or LOC from your bank? Have you had a hearing?According to the IRS:Levies A levy is a legal seizure of your property to satisfy a tax debt. Levies are different from liens. A lien is a claim used as security for the tax debt, while a levy actually takes the property to satisfy the tax debt.If you do not pay your taxes (or make arrangements to settle your debt):●we could seize and sell property that you hold (such as your car, boat, or house), or●we could levy property that is yours but is held by someone else (such as your wages, retirement accounts, dividends, bank accounts, rental income, accounts receivables, the cash value of your life insurance, or commissions).We usually levy only when the following three conditions have occurred:●we assessed the tax and sent you a Notice and Demand for Payment,●you neglected or refused to pay the tax, and●we 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. We usually send this notice to your last known address by certified mail, return receipt requested, but we may give this notice to you in person, or leave it at your home or your usual place of business. Please note: If we levy your state tax refund, we may send you a Notice of Levy on Your State Tax Refund - Notice of Your Right to Hearing after the levy.http://www.irs.gov/pub/irs-pdf/p594.pdf Link to comment Share on other sites More sharing options...
gto250us Posted October 22, 2009 Share Posted October 22, 2009 I owe the IRS $3,000 from 2006, during a time when I was unemployed. I don't have the money to pay it off, or even to make reasonable installment payments. They have sent me a certified letter saying that they "intend to levy on certain assets". What exactly does that mean? Are they likely to tow away my car and sell it to satisfy the debt? Or will they just put a lien on my house so that when it's sold at some point in the future they get their cut out of the profits? I'm wondering if I should worry about my car disappearing in the middle of the night. I really don't have have any other assets worth anything other than the house and the car. And sale of the car would barely cover the debt - it's not worth much more than what I owe on it. Can anyone enlighten me on what actions I can expect from the IRS here?Wow - Sounds like you are toast. The IRS can take just about anything you have if you piss them off. I suggest you meet with them and offer to work something out. As I said just don't piss them off. Link to comment Share on other sites More sharing options...
BryanS Posted October 22, 2009 Share Posted October 22, 2009 The single most valuable asset that we all have is our future income. They will probably go for your wages. A monthly portion of them. If you cannot make the monthly payments now, you will be forced to once a piece of your paycheck goes to the IRS every month until the debt is paid.They just want their money. A junk car, or throwing you out of your home, is too complicated for them. It would be much easier for them - and you - if they just garnished your wages. Or if you just paid them now.Get ready.Also - have you consulted a tax attorney? I see commercials for them all the time on TV... Link to comment Share on other sites More sharing options...
Ross Posted October 22, 2009 Share Posted October 22, 2009 You need an accountant or attorney yesterday. Don't mess around with the IRS when they have sent that levy notice. Link to comment Share on other sites More sharing options...
John Rich Posted October 23, 2009 Author Share Posted October 23, 2009 I can't afford no steenkin lawyer. I'm unemployed, so there are no wages to garnish. I have no money in accounts, as I've drained my 401k during my unemployment for living expenses. I've got a 2001 Chevy Blazer with 150,000 miles worth about $2,000, so that wouldn't even cover the debt. And a 2008 VW Beetle which is worth $12k, about exactly what I owe on it. So I seem to be levy proof, as there are no assets worth anything for them to seize. Would that stop them, or would they go ahead and take something just to show me who's the boss? I do have good equity in my house, but they're talking levy, not lien here. Would they seize a house with $75k equity to satisfy a $4k debt? I wouldn't put anything past those bastards.The last thing I had from them was an acknowledgement that they recognized I had no income, and because the debt was small, they were going to postpone any enforcement. Nothing has changed. And now they're all of a sudden talking "levy". Hope and Change! Maybe I should chain my vehicles to the tree in the backyard... Link to comment Share on other sites More sharing options...
Ross Posted October 23, 2009 Share Posted October 23, 2009 If you've spent a lot of time at Juliff and Addicks (the BRI deals), PM me and I'll try to put you in touch with someone who can point you in the right direction. Link to comment Share on other sites More sharing options...
BryanS Posted October 23, 2009 Share Posted October 23, 2009 I can't afford no steenkin lawyer. I'm unemployed, so there are no wages to garnish. I have no money in accounts, as I've drained my 401k during my unemployment for living expenses. I've got a 2001 Chevy Blazer with 150,000 miles worth about $2,000, so that wouldn't even cover the debt. And a 2008 VW Beetle which is worth $12k, about exactly what I owe on it. So I seem to be levy proof, as there are no assets worth anything for them to seize. Would that stop them, or would they go ahead and take something just to show me who's the boss? I do have good equity in my house, but they're talking levy, not lien here. Would they seize a house with $75k equity to satisfy a $4k debt? I wouldn't put anything past those bastards.The last thing I had from them was an acknowledgement that they recognized I had no income, and because the debt was small, they were going to postpone any enforcement. Nothing has changed. And now they're all of a sudden talking "levy". Hope and Change! Maybe I should chain my vehicles to the tree in the backyard...If you have 75K in equity in your home, why not get a home equity line of credit - and just pay the debt?The only problem with the HELOC... is the bank may require proof of income, for any loan they give.So once you gain employment again... You could look into something like that...The HELOC is good if used properly... Additional safety net.Just throwing out ideas. Link to comment Share on other sites More sharing options...
sevfiv Posted October 23, 2009 Share Posted October 23, 2009 ^Oops, forgot about the employment part of getting a LOC. I guess task #1 = becoming employed. Link to comment Share on other sites More sharing options...
musicman Posted October 23, 2009 Share Posted October 23, 2009 don't hire ronald green Link to comment Share on other sites More sharing options...
Porchman Posted October 23, 2009 Share Posted October 23, 2009 I owe the IRS $3,000 from 2006, during a time when I was unemployed. I don't have the money to pay it off, or even to make reasonable installment payments. They have sent me a certified letter saying that they "intend to levy on certain assets". What exactly does that mean? Are they likely to tow away my car and sell it to satisfy the debt? Or will they just put a lien on my house so that when it's sold at some point in the future they get their cut out of the profits? I'm wondering if I should worry about my car disappearing in the middle of the night. I really don't have have any other assets worth anything other than the house and the car. And sale of the car would barely cover the debt - it's not worth much more than what I owe on it. Can anyone enlighten me on what actions I can expect from the IRS here?You have 30 days from the date of notice before they take any action. There should be a phone number on the notice. Call them. At least, they may be able to provide some more information.I seriously doubt they are going to commit the resources to repo your car. If they proceed, their likely course will be to put a lien on your property. You would need to deal with that lien at the time you sell your house. It will, of course, include the interest and penalty payment up to that time.Remember, the IRS has no emotion vested in this. This is what they do. They are Borg...you will be assessed. Link to comment Share on other sites More sharing options...
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