Notice of Seizure
A notice of seizure is a document issued by the Internal Revenue Service (IRS) of a country to an individual or firm. This document provides certain information on the right of the government to seize certain properties of the erring individual or firm as a result of their accrued Internal revenue taxes.
Notice of Seizure Details
In our present-day economy, the government generates funds from different sources for the nation’s survival. The primary source of income generation is from taxes, which sums up the country’s internal revenue and Gross Domestic Product (GDP) in the long run. When citizens evade these taxes, government tends to seize certain properties owned by these individuals as collateral for damages done to the economy.
When the government imposes compulsory levies on individuals or firms, it expects every individual or firm to pay taxes when due and in the right proportion. But some individuals and firms try to escape from paying at all or paying below the expected amount. To implement this policy, the government must produce a notice as a final document in seizing their properties.
The state’s Internal Revenue Service (IRS) always initiates the process. It contains certain information like the amount due, dates of unremitted taxes, taxpayer’s IRS Area and country, and even the property to be seized. It also includes the name and signature of the tax collection officers issuing the notice in your province or business territory.
Example of Notice of Seizure
When the government takes custody of a taxpayer’s asset, it does that to secure its economy and interest. Since your business is only thriving because the economy is well-managed, the government requires that you give back what is necessary to keep businesses running because a notice of seizure is a bad thing for a struggling business.
Suppose Steve owes the IRS some income taxes, which have amounted to $25,000 from 2015 until 2019. The IRS has a mandate by law to notify him that his assets have been seized to obtain his accrued taxes. This singular act of liquidating his assets comes as a repercussion of his negligence on taxes and revenue.
On the part of Mr. Steve, when the IRS seizes his assets, he has one function to clear his outstanding taxes with the government to regain liquidated assets. He may also choose to appeal for the decision of the seized goods or property or negotiate a payment plan if he is not willing to pay all immediately. If the taxpayer disagrees with this government stance, he can appeal that decision in a court of law. But it is very important to know that at this point, all his assets are at risk and at the mercy of government policies.
Significance of Notice of Seizure
The Internal Revenue Service has certain rights to claim a seized property based on the state’s constitution. The IRS is required to keep a copy of the seizure document.
Before the notice of seizure is released, the IRS will first send a notice and demand for payment, indicating the money accrued over the period to such taxpayer or firm. If the taxpayer or firm ignores or refuses to take action within thirty days or as stipulated on the notice, the IRS will send a second document. This document will be a letter indicating an intent to levy the said taxpayer with appropriate actions following suit.
When an individual or firm decides to evade taxes intentionally or otherwise, the government takes up this action through the IRS officers in that area. The IRS has the right to seize such property and sell it to cover up the debt owed by the taxpayer or firm.