Can the IRS take my stuff?
This was a question sent to us in a website chat. We asked, by “stuff” do you mean your furniture and clothing? Susan indicated yes, that was what she was asking about. Then, Susan, most likely not. In the majority of cases, the IRS is prevented from taking your ‘stuff” (clothing and furniture). For most people, their clothing and personal household belongings are beyond the IRS’ collection power. As with most things, there are some exceptions.
Wearing Apparel
Section 6334(a)(1) of the Internal Revenue Code allows you to keep all your “necessary” clothing. The IRS can technically take clothing that is not necessary, like designer shoes, handbags, etc. If there are several pictures on Facebook with you out on the town wearing Stuart Weitzman, you most likely have a problem.
School Books
- 6334(a)(1) of the Internal Revenue Code allows you to keep all of your “necessary” schoolbooks.
Furniture and Personal Effects
Section 6334(a)(2) of the tax code protects your Fuel, provisions, furniture, and personal effects up to $6,250 (2019) in value from the IRS.
Tools of a Trade
Section 6334(a)(3) of the tax code protects your books and tools necessary for your trade, business or profession up to $3,125 (2019) in value from the IRS.
Books
Section 6334(a)(1) of the Internal Revenue Code allows you to keep all your “necessary” books. The IRS can technically take books that are not necessary, like a first addition signed by a famous author. Now, is the IRS going to be scurrying through your bookshelves, looking for those valuable books, probably not. However, if there is a social media picture of you and Ann Rice, where she is handing you a first addition of Interview with the Vampire, they will probably inquire what happened to the book.
It is important to remember these exemption amounts when completing an IRS Collection Information Statement (Form 433A). The values up to the exception amounts should be claimed as exempt. This is particularly important in an Offer in Compromise where these values would be considered part of your Reasonable Collection Potential, if not excluded.