Cash Seizure

Cash Seizures

If you have failed to pay your taxes, penalties, or interest, it’s essential to understand your rights and responsibilities under the law. The Louisiana Revised Statutes authorize the secretary to enforce tax collection through distraint and sale.

What is Distraint?

According to Revised Statute 47:1569, if a taxpayer fails to pay their tax debt, the secretary has the right to initiate the process of distraint and sale. Distraint, as defined in Revised Statute 47:1570, allows the secretary to levy upon and seize various types of property or rights to property to satisfy any outstanding tax, penalty, or interest due.

Types of Property That Can Be Seized

The most common forms of property subject to distraint are:

• Bank Accounts
• Wages
• Real Estate
• Stocks and Securities
• Goods and Chattels
• Effects
• Evidences of Debt

However, it’s important to note that virtually any property of value can be seized and sold to settle a tax debt.

The Seizure Process

Revised Statute 47:1571 outlines the procedures for distraint, ensuring that the actions are conducted according to the law. If property is subject to distraint, Revised Statute 47:1572 provides for the surrender of such property, and Revised Statute 47:1573 governs the sale of seized property to cover the outstanding tax obligations.

Avoiding Seizure: What You Can Do

If you are facing a tax debt, it’s crucial to address the issue before distraint procedures are initiated. Reach out to a tax professional or contact the relevant tax authority to explore payment options, including installment agreements or other resolutions.