IRS Bank levy, IRS Wage Levy - Los Angeles Tax Lawyer, Asset Seizure, IRS Tax seizure, Bankruptcy Law Attorney, IRS freeze

Tax Levy - Bank & Wage Levies

Assets Exempt From IRS Levy

IRS Seized My Account

IRS and other taxing agencies use tax levies as one of its many tools to collect on taxes which are owed by the taxpayer. It is one of the most powerful tools that the IRS has to collect on its taxes. Unlike other creditors, IRS is given the ultimate power to seize any assets that you may have to satisfy taxes which are owed to them without getting a court order. IRS is authorized to use vast array of data bases to find out where a taxpayer lives, works, banks, holds investment accounts. IRS data bases will allow them to have information on your ownership in land, cars, boats, interest in businesses and any other assets which can be sold or liquidated to satisfy taxes which may be owed.

Taxpayers are usually given a short notice by the IRS that their properties will be seized by the government and are told to make appropriate arrangements to prevent such seizure.

If not properly addressed, levies can have a devastating effect on most taxpayers. You may lose your wages, holdings in your bank or investment accounts. Your retirement savings may be liquidated and your cars and non-cash assets may be seized and sold at an auction. It is advised that you contact a lawyer immediately if you are threatened with a levy. Otherwise, your finances may suffer an irreversible damage.

What assets exempt from IRS seizure:

§ 6334. Property exempt from levy

(a) Enumeration

There shall be exempt from levy—

(1) Wearing apparel and school books

Such items of wearing apparel and such school books as are necessary for the taxpayer or for members of his family;

(2) Fuel, provisions, furniture, and personal effects

So much of the fuel, provisions, furniture, and personal effects in the taxpayer’s household, and of the arms for personal use, livestock, and poultry of the taxpayer, as does not exceed $6,250 in value;

(3) Books and tools of a trade, business, or profession

So many of the books and tools necessary for the trade, business, or profession of the taxpayer as do not exceed in the aggregate $3,125 in value.

(4) Unemployment benefits

Any amount payable to an individual with respect to his unemployment (including any portion thereof payable with respect to dependents) under an unemployment compensation law of the United States, of any State, or of the District of Columbia or of the Commonwealth of Puerto Rico.

(5) Undelivered mail

Mail, addressed to any person, which has not been delivered to the addressee.

(6) Certain annuity and pension payments

Annuity or pension payments under the Railroad Retirement Act, benefits under the Railroad Unemployment Insurance Act, special pension payments received by a person whose name has been entered on the Army, Navy, Air Force, and Coast Guard Medal of Honor roll ( 38 U.S.C. 1562) and annuities based on retired or retainer pay under chapter 73 of title 10 of the United States Code.

(7) Workmen’s compensation

Any amount payable to an individual as workmen’s compensation (including any portion thereof payable with respect to dependents) under a workmen’s compensation law of the United States, any State, the District of Columbia, or the Commonwealth of Puerto Rico.

(8) Judgments for support of minor children

If the taxpayer is required by judgment of a court of competent jurisdiction, entered prior to the date of levy, to contribute to the support of his minor children, so much of his salary, wages, or other income as is necessary to comply with such judgment.

(9) Minimum exemption for wages, salary, and other income

Any amount payable to or received by an individual as wages or salary for personal services, or as income derived from other sources, during any period, to the extent that the total of such amounts payable to or received by him during such period does not exceed the applicable exempt amount determined under subsection (d).

(10) Certain service-connected disability payments

Any amount payable to an individual as a service-connected (within the meaning of section 101 (16) of title 38, United States Code) disability benefit under—

(A) subchapter II, III, IV, V,,^[1] or VI of chapter 11 of such title 38, or

(B) chapter 13, 21, 23, 31, 32, 34, 35, 37, or 39 of such title 38.

(11) Certain public assistance payments

Any amount payable to an individual as a recipient of public assistance under—

(A) title IV or title XVI (relating to supplemental security income for the aged, blind, and disabled) of the Social Security Act, or

(B) State or local government public assistance or public welfare programs for which eligibility is determined by a needs or income test.

(12) Assistance under Job Training Partnership Act

Any amount payable to a participant under the Job Training Partnership Act (29 U.S.C. 1501 et seq.) from funds appropriated pursuant to such Act.

(13) Residences exempt in small deficiency cases and principal residences and certain business assets exempt in absence of certain approval or jeopardy

(A) Residences in small deficiency cases

If the amount of the levy does not exceed $5,000—

(i) any real property used as a residence by the taxpayer; or

(ii) any real property of the taxpayer (other than real property which is rented) used by any other individual as a residence.

(B) Principal residences and certain business assets

Except to the extent provided in subsection (e)—

(i) the principal residence of the taxpayer (within the meaning of section 121); and

(ii) tangible personal property or real property (other than real property which is rented) used in the trade or business of an individual taxpayer.

(b) Appraisal

The officer seizing property of the type described in subsection (a) shall appraise and set aside to the owner the amount of such property declared to be exempt. If the taxpayer objects at the time of the seizure to the valuation fixed by the officer making the seizure, the Secretary shall summon three disinterested individuals who shall make the valuation.

Notwithstanding any other law of the United States (including section 207 of the Social Security Act), no property or rights to property shall be exempt from levy other than the property specifically made exempt by subsection (a).

(d) Exempt amount of wages, salary, or other income

(1) Individuals on weekly basis

In the case of an individual who is paid or receives all of his wages, salary, and other income on a weekly basis, the amount of the wages, salary, and other income payable to or received by him during any week which is exempt from levy under subsection (a)(9) shall be the exempt amount.

(2) Exempt amount

For purposes of paragraph (1), the term “exempt amount” means an amount equal to—

(A) the sum of—

(i) the standard deduction, and

(ii) the aggregate amount of the deductions for personal exemptions allowed the taxpayer under section 151 in the taxable year in which such levy occurs, divided by

(B) 52.

Unless the taxpayer submits to the Secretary a written and properly verified statement specifying the facts necessary to determine the proper amount under subparagraph (A), subparagraph (A) shall be applied as if the taxpayer were a married individual filing a separate return with only 1 personal exemption.

(3) Individuals on basis other than weekly

In the case of any individual not described in paragraph (1), the amount of the wages, salary, and other income payable to or received by him during any applicable pay period or other fiscal period (as determined under regulations prescribed by the Secretary) which is exempt from levy under subsection (a)(9) shall be an amount (determined under such regulations) which as nearly as possible will result in the same total exemption from levy for such individual over a period of time as he would have under paragraph (1) if (during such period of time) he were paid or received such wages, salary, and other income on a regular weekly basis.

(e) Levy allowed on principal residences and certain business assets in certain circumstances

(1) Principal residences

(A) Approval required

A principal residence shall not be exempt from levy if a judge or magistrate of a district court of the United States approves (in writing) the levy of such residence.

(B) Jurisdiction

The district courts of the United States shall have exclusive jurisdiction to approve a levy under subparagraph (A).

(2) Certain business assets

Property (other than a principal residence) described in subsection (a)(13)(B) shall not be exempt from levy if—

(A) a district director or assistant district director of the Internal Revenue Service personally approves (in writing) the levy of such property; or

(B) the Secretary finds that the collection of tax is in jeopardy.

An official may not approve a levy under subparagraph (A) unless the official determines that the taxpayer’s other assets subject to collection are insufficient to pay the amount due, together with expenses of the proceedings.

(f) Levy allowed on certain specified payments

Any payment described in subparagraph (B) or (C) of section 6331 (h)(2) shall not be exempt from levy if the Secretary approves the levy thereon under section 6331 (h).

(g) Inflation adjustment

(1) In general

In the case of any calendar year beginning after 1999, each dollar amount referred to in paragraphs (2) and (3) of subsection (a) shall be increased by an amount equal to—

(A) such dollar amount, multiplied by

(B) the cost-of-living adjustment determined under section 1 (f)(3) for such calendar year, by substituting “calendar year 1998” for “calendar year 1992” in subparagraph (B) thereof.

(2) Rounding

If any dollar amount after being increased under paragraph (1) is not a multiple of $10, such dollar amount shall be rounded to the nearest multiple of $10.

Los Angeles California Tax Lawyer, Bankruptcy Law Attorney, IRS Tax Audit Lawyer, IRS Tax Audit, IRS Tax Settlement Lawyer, IRS Tax Settlement, IRS Tax Appeal, IRS Attorney Tax Appeal, IRS Wage Levy Lawyer, Employment Tax, Business Formation, Estate Planning, Criminal Tax, Tax Court Litigation, IRS Audit Representation, IRS Payment Plan, Unfiled Tax Returns, IRS Bank Levy, Offers in Compromise, Independent Contractor, Tax Bankruptcy, Tax Penalty Removal, Business Planning, Sales Tax Audit, California Sales Tax Problems, Corporate Tax Law, Innocent Spouse Relief, Innocent Spouse IRS Lawyer, Business Tax Law, State Tax Problems
Serving California – Los Angeles, Santa Monica, Long Beach, Torrance tax attorney, Redondo Beach, Manhattan Beach, Hermosa Beach, Downey, Whittier, El Monte, LA, Eagle Rock, L.A.Pasadena, Sherman Oaks, Northern California – Las Vegas, Nevada – Honolulu, Big Island, Maui, Kauai, Hawaii Kai, Kailua, Aiea, Hawaii

Website by Consultwebs.com - Webs For Law Firms - Lawyers

DISCLAIMER: The content of this website is intended for informational purposes only. Nothing herein is intended to form the basis of an attorney-client relationship or constitute legal advice. Sending e-mail to this firm or to an attorney at this firm will not create an attorney-client relationship. No attorney-client relationship will be created unless and until a written attorney-client agreement is signed by a Los Angeles tax attorney of Tax Lawyers Group, APC. Your use of this web site is at your own risk. We are not responsible for any errors or omissions in the content of this site or for damages arising from the use or performance of this site under any circumstances. By accessing our web site, you agree that the statutes and laws of the State of California will apply to all matters relating to use of this web site and you agree to submit to the exclusive personal jurisdiction and venue of the Superior Court of Los Angeles and/or the United States District Court for the Central District of California with respect to such disputes. The inclusion of any link on this site does not imply any recommendation, approval or endorsement of that site by us. In any State where this web site fails to comply with all laws and ethical rules of that state, this web site is not intended to be advertising and we do not wish to represent anyone desiring representation based upon viewing this web site.

© - Tax Lawyers Group, A Professional Corporation, is a Los Angeles area tax lawyers serving our clients throughout United States and California including Los Angeles tax lawyer, Pasadena tax lawyer, Long Beach Tax Lawyer, Manhattan Beach tax attorney, Westwood tax lawyer, Santa Monica tax lawyer, El Segundo tax attorney, Whittier Tax Lawyer, Downey Tax Lawyer , Orange County tax attorney, Hermosa Beach tax lawyer, Redondo Beach tax attorney, San Fernando Valley tax attorney, Santa Monica tax lawyer, South Bay tax lawyer, Rancho Palos Verdes Tax Lawyer, Gardena tax lawyer and Torrance tax lawyer, Beverly Hills, Burbank, Culver City, Glendale, Encino, Malibu, Bakersfield, Fresno, Tarzana, Arcadia, Azusa, Glendora, Studio City, Marina Del Rey, Hollywood, West Hollywood, Pacific Palisades, Pasadena, Reseda, San Dimas, Sherman Oaks, Universal City, Van Nuys, Riverside, San Bernardino, Los Angeles, LA, Fresno, Modesto, Oakland, Orange County, Santa Ana, Irvine, Costa Mesa, Anaheim, Orange, Newport Beach, Riverside, San Bernardino, Palm Springs, San Diego, San Francisco, San Jose, Los Angeles, L.A., Oakland, Modesto, Santa Barbara, Sacramento, Los Angeles, Santa Barbara, Ventura, Redding, San Diego, San Francisco, with IRS tax problems concerning Tax Audits, Offer In Compromise, Bank Levy and Wage Levy, Tax Liens, Bankruptcy, Business Planning, and Estate Planning. Victor J. Yoo, Tax Lawyer, is the principal of the Los Angeles tax law firm.