You should realize, however, that if you owe the IRS under 00, your assets may not necessarily be seized and sold off.
In the PLR, the taxpayer had a complicated ownership structure involving both foreign and domestic subsidiaries and laid out a series of steps involving liquidations, mergers and contributions to ultimately simplify the entire structure.
At the start, one of the foreign subsidiaries (a liquidating subsidiary) was owned partially by two different subsidiaries. Comm'r, 64 TC 474 (1975) to come to the proposition.
When it comes to satisfying the debt you owe to the federal government, the IRS can seize just about any kind of asset that has equity and can be resold for cash.
In general, it can lay claim to everything from expensive jewelry you own to investments you have been making to save up for retirement.
Further, quitting your job or not working altogether will not excuse you from having to repay your tax debt.
In fact, even if you are unemployed, the IRS may find other sources of income to seize to pay off what you owe.Further, you typically will have no way to reclaim these assets once they have been seized by the IRS.They will be sold off relatively quickly, usually at an auction that is open to the public.It can garnish sources of income like: It cannot legally seize money that you must pay in back child support.It also cannot lay claim to money that you receive from Social Security disability payments.The money raised from the sale is then applied to the tax debt that you owe to the IRS.