The IRS has reached an agreement to share taxpayer information with immigration authorities, allowing them to identify immigrants they may wish to deport, according to court filings from April 8, 2025. This decision is seen as a win for the Trump administration, which has been aggressively pushing for deportations, but it has sparked backlash from immigrant rights groups.
The IRS allows many undocumented immigrants to pay taxes, which benefits their immigration cases and contributes to U.S. federal programs like Social Security.
In 2025, failing to pay taxes could result in penalties, interest, and the IRS potentially seizing assets.
If taxes aren’t paid by the deadline (April 15 for most, except for 13 states with extensions), the IRS can initiate a process that may include asset seizure. The IRS can levy bank accounts, wages, rental income, pensions, Social Security benefits, and even life insurance. Physical property like cars or homes can also be targeted.
The IRS is required to notify taxpayers about their debt, issue a formal levy notice, and offer a chance for a hearing before proceeding.
The IRS can seize funds from a bank account for unpaid taxes, sending a “Final Notice of Intent to Levy” (Letter 1058) before the seizure occurs. If the IRS takes wages, a portion of your income will be sent directly to the IRS each pay period until the debt is settled or the levy is lifted. If the IRS places a levy on a bank account, the funds will be frozen, and the bank may charge a $100 processing fee. Any new deposits after the levy may be accessed, and a portion of your wages may be exempt, ensuring you still receive an income. If this causes financial hardship, there are ways to appeal to the IRS.
The IRS can also seize property like homes, vehicles, and land to satisfy tax debts. These items are sold at auction, and if the proceeds don’t cover the debt, the taxpayer is still responsible for the remaining balance. Taxpayers may be able to reclaim property before it is auctioned, but they must pay the winning bid price plus 20% interest per year. The IRS can also withdraw funds from a bank account held by a third party if the taxpayer is listed as a beneficiary or account holder. Business owners must surrender property belonging to someone under a levy but are not allowed to seize death benefits or Supplemental Security Income (SSI).
Levies do not happen immediately. First, a notice is sent outlining the amount due, followed by a final warning with the intention to levy. If there is still no payment or agreement, the state may step in.
