The IRS could seize accounts, cars, and homes from married couples who do not complete this tax procedure in the United States

Taxpayers are legally required to file their tax returns every year and pay any taxes owed to the Internal Revenue Service (IRS).

Those who fail to meet their tax obligations, including married couples who file jointly, may face a range of penalties. These can include fines and interest charges, as well as asset seizures and even criminal prosecution.

According to the IRS, a levy is the “legal seizure” of property to “satisfy a tax debt.” The agency explains that it can garnish wages, withdraw money from bank accounts or other financial accounts, and seize and sell vehicles, real estate, or other personal property.

Warning for couples who fail to complete this tax filing requirement

In general, couples can avoid an IRS levy by filing their tax returns on time. Spouses may choose to file separately or jointly, but in either case, they must comply with this tax obligation. Married couples are also required to pay any taxes they owe.

If they fail to file a return or pay their taxes, the IRS may impose penalties on both spouses because each person is responsible when filing jointly. In addition, the agency charges interest on those penalties. If taxpayers do not pay their taxes and penalties, the IRS may eventually move forward with a levy.

An IRS levy is considered a last resort

It is important to note that the IRS does not automatically seize property for every unpaid tax debt. Levies are generally used only after the agency has exhausted other collection efforts. The IRS usually notifies taxpayers if there is a problem, if taxes are overdue, or if their case may lead to a levy.

Taxpayers should contact the agency immediately if they receive a levy notice or collection letter. If they ignore IRS notices and make no effort to resolve their tax debt, the agency may proceed with enforcement actions.

The IRS also explains that if it seizes property, it will sell the property and apply the proceeds, minus the costs of the sale, toward the tax debt. Before selling a property, the IRS determines a minimum bid price and gives the owner an opportunity to challenge the valuation.

After issuing a public notice, the IRS generally waits at least 10 days before selling the property. If money remains after the debt has been paid, the IRS may issue a refund for the remaining balance.

IRS options to help taxpayers avoid a levy

The IRS explains that taxpayers can avoid a levy by filing their returns on time and paying taxes when due.

The agency states that if you need more time to file, you can request an extension. If you cannot pay the full amount you owe, you should pay as much as possible now and work with the IRS to resolve the remaining balance. The key says the IRS is to be proactive, so do not ignore IRS collection notices.

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