The IRS fee allows you to seize your property to meet your tax debt. It can decorate wages, take money to a bank account or other financial account, take over and sell its vehicle (s), real estate and other personal property. Can the IRS levy a joint bank account?
Joint accounts: rights and restrictions
When you have an account with another person, the law usually implies that each of them has equal rights to the funds accumulated on that account. So, when a creditor tries to decorate this account, he usually does not need to examine whether you have put more money into the account than co-owner. Unfortunately, this can mean that the money on your account can be transferred to pay the debt of a co-owner, a debt that you never owe.
Rules vary to the extent that creditors can decorate joint accounts. In some states, creditors cannot take more than half of the funds on a joint account. In other states, however, creditors may be able to decorate the entire joint bill.
Joint and separate tax debts
If your tax liability comes from a separate tax return and you are now married, different rules apply regarding your liability for your tax liability.
In non-Community states, the spouse’s separate property cannot be taken over because of tax debts. Their separate bank accounts and wages cannot be charged on paying tax debts from your separate refund. Community rules have different rules.
You can apply for an injured spouse if you have a joint tax refund to pay off your spouse’s separate tax debt. You will only be able to get the refund portion assigned to your tax positions.
However, if the tax debt comes from a joint refund, the IRS can come after your separate property, your spouse’s separate property, your joint bills or all of the above.
In these cases, the IRS is generally intended to regulate the salary of a better-paid spouse, but both spouses may be charged if you do not cooperate with the IRS.
You can protect certain money on your account if it comes from exempt sources. Social security, compensation for employees, disability, unemployment, other government benefits, retirement income, child support and even part of your wages (sometimes 25% or more) are exempt from insurance under federal and state regulations. They do not lose their exclusion status when deposited on a joint account. As long as you can prove that the source of payments to your account comes from exempt sources, these funds are protected.