Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Notice of Seizure

What it is:

A notice of seizure is a bad thing. During this time, the IRS takes physical custody of the taxpayer's assets, which could range from cash accounts to homes, cars and other assets.

How it works (Example):

Let's say John Doe falls behind on his taxes and now owes the IRS $25,000 for his income taxes from 2011. After protracted discussions with the government agency, the IRS sends him a notice of seizure, informing him that it has seized his checking account and several investment accounts in order to obtain the $25,000 it is owed.

Below is a notice of seizure template from the IRS.

Why it Matters:

A notice of seizure is a letter from the IRS informing the recipient that it is liquidating the recipient's assets.