Avoiding Asset Seizure in California: What Taxpayers Need to Know

July 23, 2025

When you owe back taxes, the IRS and California Franchise Tax Board (FTB) have the legal authority to seize your assets. This could include your car, bank accounts, retirement funds, or even your home. For California residents, the threat of asset seizure is real—but with the right strategy and support, it can often be avoided.

In this article, we’ll walk you through what asset seizure involves, when it can happen, and how to stop it before it disrupts your life.

What Is Asset Seizure?

Asset seizure is the legal process by which a government agency—like the IRS or FTB—takes your property to satisfy unpaid tax debt. It typically follows a series of collection notices and happens only after you’ve failed to respond or resolve your balance.

Here are some examples of what they can seize:

Vehicles
Real estate
Bank accounts
Business assets
Wages and rental income
Retirement accounts (in some cases)

How Does Asset Seizure Begin?

Before taking your property, the IRS or FTB must follow specific steps:

Assessment of Tax: The agency determines how much you owe.
Notice and Demand for Payment: You receive a bill explaining the debt.
Failure to Pay: You don’t respond or pay.
Final Notice of Intent to Levy and Right to a Hearing: You have 30 days to appeal or resolve the matter.
Enforced Collection: Property is seized if no action is taken.

Your Rights as a California Taxpayer

Even if you’re behind on taxes, you still have rights:

Right to a hearing: You can request a Collection Due Process (CDP) hearing to challenge the seizure.
Right to representation: You can work with a tax specialist or attorney.
Right to appeal: If you disagree with a seizure, you may appeal it.
Right to propose a resolution: Options include installment agreements, Offers in Compromise, and hardship status.

How to Prevent Asset Seizure

The best way to avoid asset seizure is to be proactive. Here are proven strategies:

File all missing returns: The IRS and FTB won’t negotiate if you’re not current.
Request an installment agreement: Pay your balance over time.
Apply for hardship status: Prove that paying would cause significant financial harm.
Offer in Compromise: Settle your tax debt for less than you owe if you qualify.
Request a CDP hearing: This can pause collection while your appeal is reviewed.

Why Timing Is Critical

Once the IRS or FTB begins asset seizure, it can be extremely difficult to undo. That’s why it’s critical to act before you receive a Final Notice. Once the process starts, you’ll need to move fast and may have limited options.

Get Help Before It’s Too Late

Tax laws are complex, and trying to resolve serious tax issues alone can backfire. Working with experienced professionals can make all the difference. Whether you’re dealing with the IRS, FTB, or both, a knowledgeable tax resolution expert can help you protect your assets and find a solution that works.

Serving All of California, Including Major Metro Areas

We work with individuals and businesses throughout California—including Los Angeles, San Diego, San Jose, San Francisco, Sacramento, Fresno, Long Beach, Oakland, Bakersfield, and Anaheim. If you’re in or near Riverside, Stockton, Irvine, Chula Vista, Fremont, or Santa Ana, our team is here to help you navigate complex tax issues and stop asset seizures before they happen.

Take Action Now

Asset seizure is one of the most aggressive tools in the government’s collection arsenal—but it’s also one of the most preventable. With the right guidance, you can stop collection actions and move toward a fresh financial start.

If you’re facing the possibility of IRS or FTB asset seizure, don’t wait for a levy notice. Contact ACE Plus Tax Resolution today for expert help across California. We’ll fight for your rights and work to protect what you’ve earned.