Know Your Taxpayer Rights con't...

There are times when you can shift the Burden of Proof.

Under some circumstances in court, the taxpayer may shift the burden of proof to the IRS with respect to factual issues used in the determination of tax liability. This sounds good but the reality is that asking the court to MAKE the IRS to do something is like requesting the Judge to ASK his brother-in-law to pay you for damages he caused. It is not likely to happen, but you can ask.

There are exemptions to what the IRS can seize.

Your standard tax deduction plus allowable personal tax exemptions divided by 52.

Now when you figure that one out you probably won’t be able to make the house payment, even if you skip eating for 3-years.

Non-exempt business property may not be seized unless the IRS District or IRS Assistant District Director determines that the taxpayer's other assets are insufficient to satisfy the tax liability or that the collection of tax is jeopardized.

The idea here is that the IRS wants you to keep working so you can pay them back but they will not hesitate to take your business property if they feel that you’re a bad risk for full payment. So, you can’t work and you’ll still owe them their money. Sounds a lot like "debtor's prison," doesn't it?

A personal residence is exempt from seizure if the unpaid tax liability is $5,000 or less. But, if the unpaid tax liability exceeds $5,000, the IRS must obtain written approval from a U.S. District Court judge to seize your personal residence. Good news is that before the IRS may seize your property, it must give you a 30-days notice so you can contest the tax levy if you disagree. Bad news is that the IRS can freeze that asset during the waiting period. Again the tax notice must clearly describe the tax levy procedures as well as your options for avoiding the tax levy, such as installment payments for overdue tax as well as the steps for redeeming property if it is seized by the IRS.

If the levy or lien is for money in your bank account, a bank will hold your money for 21-days after receiving notice of an IRS tax levy before turning it over to the IRS. This freeze allows you time to contact the IRS for an explanation.

You should appeal if you feel the tax obligation has been paid and the IRS still tries to levy your property. You should also appeal if the statute of limitations has expired, or if the subject property is exempt under bankruptcy rules. You must submit a written statement to the IRS District Director of the IRS district in which the tax lien was filed. Explain in detail why you are filing the appeal.

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