The IRS may be able to execute a legal seizure of most retirement plans such as Keogh, 401(k), IRA, or SEP to satisfy a tax debt. This may come as a harsh reality to many individuals who view these types of assets as a social safety net exempt from the reach of tax authorities, but the IRS has the right to seize almost everything. Under IRS Section 6334, most retirement accounts are not protected assets. IRS will issue Form 668(A) Notice of Levy to the plan administrator to seize assets as they become payable. Depending on the facts of an individual case, this may or may not be true. Individual situations can vary greatly depending on many factors such as the effect that marital status may have on such assets under current federal and state tax law, and such as whether a taxpayer has a vested interest in a pension. Most individual taxpayers lack a tax expert’s knowledge as to where to strategically place such assets when structuring a negotiation plan for an Offer in Compromise or other tax debt resolution program to ensure the taxpayer’s present or future pension benefits and retirement savings are fully protected.
Don’t wait until it is too late. Call Coast One Tax Group for a free consultation to have your unique situation evaluated and your options explained to you in a manner in which you can understand which resolution choices are available to you and what rights you have as a taxpayer. Help us help you by contacting us today!
If you owe $10,000 or more in back taxes to the State or IRS, the team of tax experts at Coast One Tax Group is here to help.