If you owe money to the IRS, you may receive contact notifying you of the IRS’s intent to pursue payment of the unpaid debt. Contact may come in the form of a fairly generic mailing, or you may be subjected to an unannounced visit from an IRS Revenue Officer at your home or place of business. Regardless of the means by which you are contacted, the intent of the contact is to determine what assets you have available in order to pay the taxes you owe. The IRS will ask that you complete certain forms outlining your assets, including any retirement accounts.
Circumstances Where the IRS May Target Your 401(k) or Other Retirement Assets for Unpaid Tax Debt
Typically, the IRS will not go after your 401(k) or other retirement account unless you have demonstrated a flagrant attempt to not pay the taxes you owe. Flagrant nonpayment of taxes may include situations where the taxpayer:
- is guilty of tax evasion,
- has committed tax fraud,
- is guilty of failure to cooperate with an IRS investigation,
- is intentionally trying to place assets out of the IRS’s reach,
- is earning illegal income,
- continues to owe the IRS money even after agreeing not to owe additional money in the future.
If the IRS is after you for unpaid taxes, it is important to arm yourself with legal protection to protect your retirement accounts and other assets. We are here to help. Many of our past clients have provided important client testimonials to help you understand how we may benefit you in this type of situation. We encourage you to check it out today.