En esta noticia
The Internal Revenue Service (IRS) has legal mechanisms to collect unpaid tax debts and, in certain cases, can move against bank accounts, income, vehicles and properties of taxpayers who do not regularize their situation.
Although the procedure can affect people who live in states such as New York, California and Texas, it is not an exclusive measure of those jurisdictions.
The mechanism is part of the federal tax collection system and can be applied to any taxpayer who has outstanding obligations with the agency.
What happens when a debt with the IRS remains unpaid
According to official IRS information, when a taxpayer does not pay their taxes on time and also does not tell the agency why they cannot do so, different collection actions can begin.
The process can include payment notices, penalties and interest and, if the debt continues unresolved, forced collection measures. Among them is the so-called levy, which allows the IRS to legally take certain assets or funds to cover a tax debt.
For this reason, receiving an official IRS notice should not be ignored. The agency recommends that taxpayers who cannot pay contact the agency to learn about the available alternatives.
What the IRS can seize
The IRS explains that a levy can be used to collect a tax debt and can reach different types of assets.
Among the possibilities are:
- Bank accounts and other financial funds.
- Wages and income.
- Vehicles.
- Real estate properties.
- Other personal property that can be used to satisfy the debt.
In the specific case of bank accounts, when the IRS issues a levy against a financial institution, the funds may be held and, after a set period, sent to the agency to cover the debt. The IRS notes that, in this procedure, the held funds are sent after 21 days.
New York, California and Texas: why these states appear
Taxpayers in New York, California and Texas are also covered by these rules because this is a procedure related to the administration of federal taxes.
This means that there is no special rule ordering the IRS to seize the accounts or properties of all residents of those three states. The difference is important: the possibility of a levy depends on the existence of a tax debt and on the case advancing within the collection process established by the agency.
In other words, a person who lives in California, Texas or New York does not automatically lose their bank account, vehicle or home for receiving an IRS notice. The levy is a tool for forced collection that can be used when taxes are owed and the taxpayer does not resolve the situation.
The notice that should not be ignored
One of the most important documents in this process is the Final Notice of Intent to Levy and Notice of Your Right to a Hearing, that is, the final notice of intent to levy and of the taxpayer’s rights to request a hearing.
The IRS itself indicates that those who receive this notice must contact the agency immediately.
The purpose of this communication is to allow the taxpayer to learn the status of their debt and the available alternatives before a collection measure advances.
What options exist if a person cannot pay
Having a debt with the IRS does not necessarily mean that the only alternative is to pay the full amount immediately.
The agency considers different mechanisms for certain taxpayers, including installment payment plans, payment agreements and Offers in Compromise, through which some people may try to resolve a debt for an amount lower than the total when they meet the corresponding requirements.
There is also the possibility of requesting a temporary postponement of collection when the taxpayer demonstrates that they cannot afford the debt at that time.