Which Assets Are Protected From the IRS?

Taking on the Internal Revenue Service (IRS) can be scary. It’s a massive federal agency focused on making sure the government gets money out of you. When most people get a letter from the IRS, their first question is what it’s going to cost them.

We hear from clients all the time wondering what valuable assets the IRS is going to come after when they owe money. It can feel like all your hard work is about to go up in smoke, leaving you penniless, hopeless, and even homeless. Thankfully, this just isn’t how the system works. We want to give you at least some peace of mind in knowing which assets you should claim as exempt with the IRS when trying to settle a claim.

Your home when you owe less than $5,000

The IRS is not permitted to seize someone’s home if the unpaid taxes are “minor.” The specific number is $5,000, so if you’re under this number your home will be protected from IRS seizure unless other circumstances are present.

Clothing and apparel

The IRS can’t steal the clothes off your backs. The same applies to the rest of your family. You will not need to worry about your entire wardrobe being taken when you owe money because you need these items to reasonably survive.

Books and other tools of the trade

You are owed the right to work and make a living. The IRS can’t take this right away from you. Even if you have expensive tools that could satisfy any unpaid taxes to the IRS, officials still can’t take these items away up to a $3,125 limit.

Unemployment benefits and workers’ compensation

Any amount of these benefits you receive is exempt from seizure by the IRS. It doesn’t matter how much or little you are making as the entire payment is protected.

Child support payments

These are also protected from the IRS at any amount. You are owed these payments in order to take care of a child, and the IRS taking this away would put the child at risk.

Undelivered mail

This one covers any item or asset you have coming in the mail. If the IRS is seizing your property to cover back taxes, they cannot look into items you have coming in the mail and seize them.

Other assets

You can read more here about what other assets and payments are protected from seizure by the IRS. It’s important to know how and when you’re protected because IRS officials could attempt to seize assets they’re not allowed to touch.Navigating your personal finances can be challenging enough, which is why you need a law firm with experience taking on the IRS. We help individuals and small businesses resolve their disputes with the IRS. If you need help getting your situation with the IRS sorted out, call Attorney Robert Boeshaar today.