2025 IRS Notice of Seizure Explained: What It Means and How It Works

Julia Kagan is a seasoned financial and consumer journalist with extensive experience in personal finance editing at Investopedia.

What Is an IRS Notice of Seizure?

An IRS Notice of Seizure is an official written notification sent to individuals or businesses informing them that the government has legally seized their property due to unpaid federal taxes. This document, often referred to as Form 2433, is issued under the authority of Section 6331 of the Internal Revenue Code and confirms that the IRS has taken possession of assets following a levy initiated by the Area Director of Internal Revenue.

The notice details the date from which the taxes became overdue, the total amount owed, and specifies the taxpayer's Internal Revenue Area and Territory. It also lists the exact property seized and includes the name and signature of the Revenue Officer responsible for the seizure.

Understanding the Notice of Seizure Process

The Notice of Seizure represents the final step in the IRS's process of collecting unpaid federal taxes through property seizure. Initially, the IRS issues a "Notice and Demand for Payment" to alert taxpayers of their outstanding tax liabilities.

If the taxpayer fails to respond or pay the debt in full, the IRS proceeds by sending a formal letter of intent to levy assets. This intent may be communicated through various forms depending on the taxpayer's circumstances. For example, a delinquent taxpayer with a significant state income tax refund might receive a CP 504 form, signaling the IRS's plan to levy the state refund to satisfy the debt.

The Role of the Notice of Seizure in Asset Collection

The CP90 notice serves as the final warning before asset seizure, indicating that the IRS will proceed with levying property unless the taxpayer acts within 30 days. This notice informs the taxpayer that all assets—including real estate, bank accounts, retirement funds, and other investments—are at risk.

Taxpayers who disagree with the notice have the right to request a Collection Due Process hearing and may appeal the decision if necessary.

Once the IRS seizes assets, it is mandatory to leave a copy of the Notice of Seizure at the seizure location and send copies via both regular and certified mail to the taxpayer's last known home and work addresses.

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