Topic: Levy: Seizure of Property (Part I)

Property that can’t be seized (“levied”) by the IRS

Certain property is exempt from seizure. For example, the IRS can’t seize the following: unemployment benefits, certain annuity and pension benefits, certain service-connected disability payments, worker’s compensation, certain public assistance payments, minimum weekly exempt income, assistance under the Job Training Partnership Act, and income for court-ordered child support payments.

They also can’t seize necessary schoolbooks and clothing, undelivered mail, certain amounts worth of fuel, provisions, furniture, personal effects for a household, and certain amounts worth of books and tools for trade, business, or professions.

There are also limitations on their ability to seize a primary residence and certain business assets. Lastly, the IRS can’t seize your property unless they expect net proceeds to help pay off your tax debt.

(IRS Publication 594 and (TTT 06/30/2020)