If you are facing a tax levy or garnishment from the IRS, you may be concerned that all of your assets and bank accounts are at the mercy of the federal government. What kinds of bank accounts can the IRS not touch? Is there a way to protect your assets from garnishment?
The IRS can generally levy any bank accounts that are under your name. Working with an experienced tax professional can help you minimize the burden placed on you from the garnishment.
When the IRS issues a tax levy or garnishment, it has already exhausted all other attempts to repay your tax debt. Now, it has permission to take assets directly from your paycheck and bank accounts.
The IRS can generally take money from any bank accounts in your name. These may include:
Can the IRS freeze joint accounts and take assets from them? It can and may do so if it has attempted to repay debt from other accounts to no avail. This means a person’s spouse may also face the consequences of an IRS tax levy.
You may be researching safe bank accounts from the IRS to attempt to avoid asset seizure or garnishment. Generally, the two types of accounts the IRS can’t garnish are:
But before you start moving funds to an offshore account, be aware that you could be accused of tax evasion for doing so. Tax evasion occurs when you illegally avoid paying your tax liability. All tax residents and citizens are required to pay taxes, and evading them might lead to criminal charges and imprisonment.
The IRS will not seize all of your assets or anywhere close to all of your assets. Several types of income and property are exempt from garnishment and seizure, such as:
Even though there are a few bank accounts the IRS cannot touch, many of your assets won’t be at risk of seizure anyway.
As you can see, looking into IRS-proof bank account types isn’t typically an effective way to bypass garnishment. You have a duty to pay tax debt, and the longer you avoid it, the worse your penalties will be.
Instead of looking for IRS levy-exempt accounts, start taking action to release the tax levy or garnishment. These are a few options you have:
What kinds of bank accounts can the IRS not touch? While the IRS generally cannot garnish funds from retirement and offshore accounts, you should avoid transferring funds to these accounts or taking other actions that may be considered tax evasion. Instead, contact our tax attorneys at Levy & Associates for assistance. Call 877-620-6490 or fill out our contact form today.
Levy & Associates is available for free initial consultations. We’re happy to answer any questions you have about the audit process or address any concerns about your specific situation.
There’s never a good time to be audited, and the time-consuming process will take away from your business or family if you try to face it alone. Let us handle and coordinate communication, so you can return to your daily life.