Know Your Rights – What the IRS Can’t Take
Every day we get a phone call from someone who is scared that the IRS will come and take everything they own from their house in the middle of the night.
Today we’re going to talk about things that the IRS absolutely can NOT touch. Accountants, this is good information for you to know as well.
First on the list is your clothes and schoolbooks. Next on the list is fuel, supplies, and groceries – basically items you use daily in your life.
Also, any tools of the trade are off-limits. Now there are some limitations to that. But up to a certain point – your work tools.
They cannot touch your unemployment benefits, which is really good news. Because if you’re unemployed, the last thing you want is the IRS taking your unemployment check out of the mailbox. They also can’t touch your undelivered mail.
IRS can’t touch railroad and military pension payments. They also can’t touch workman’s compensation payments or disability payments. Again, remember some of these are up to only a certain amount, but it’s important to know that they are generally off-limits.
IRS also can’t touch child support payments. Anyone that receives public assistance, they can’t touch that either.
What about my paycheck?
IRS can only take a certain amount of your wages or paycheck. They can’t take your full paycheck. They use a calculation, which we won’t go into here.
However, it’s important to know that even if they do what’s called a levy of your paycheck, they don’t get it all.
What about my house?
The final thing we are going to talk about is your house. So many people are worried about IRS taking their house, and this is the deal: they can’t take your house in the middle of the night if your liability is under $5,000.
Or unless they get SPECIAL permission and approval by a whole chain of people at the IRS. There is a lot that must happen before it gets to that point, so don’t worry about IRS showing up in the middle of the night taking your house.
We hope this information is helpful to you or someone you know.
Accountants, we hope this information is helpful for both you and your clients.
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