There are a number of ways the federal government can get its hands on money it believes it is owed. For instance, there is the Treasury Offset Program (TOP), which can keep your federal tax refund to repay federal non-tax debts. TOP can also keep your refund to pay other debts as well, including child support, Ohio unemployment compensation debt, state income tax debt and so on.
TOP can dig even deeper. It can withhold your Ohio tax refund or government payments to you if you're a vendor. If you have federal tax debts, the IRS can levy your property. "Levy" is a euphemism for "seize and sell." It's different than a lien, which is a claim against your property. As the IRS states, "...a levy actually takes the property to satisfy the tax debt." What can the IRS take? Your house. Your car, your boat, your bank accounts, your retirement account, your life insurance, etc.
If you have a federal tax debt and you don't pay the taxes and you don't make arrangements to pay the taxes, it's possible that the IRS will take your property -- or property you have an interest in -- to settle the debt.
Suffice it to say that the agency has significant powers at its disposal and is not afraid to use them. That is why it is crucial to act quickly and decisively when you are under investigation for tax fraud, tax evasion or failing to file a tax return. The business you own, the house you live in, the car you drive can all be at risk.
Experienced IRS tax attorneys can assess your liabilities, your options and your best way forward no matter where you are in the U.S.
