How the IRS Finds Your Assets

In today’s digital age, the IRS uses a variety of sophisticated techniques to uncover taxpayer assets. Understanding these methods can help you stay informed and prepared. Here’s a look at how the IRS tracks down your assets:

Automated Locator Services

The IRS employs advanced Locator Service Programs to efficiently identify and locate taxpayer assets. While these programs aren’t accessible to the public, they provide a wealth of information that various government agencies can tap into, ensuring comprehensive asset tracking.

The Internet as a Resource

The Internet is a powerful tool for the IRS, offering a treasure trove of information about individuals and their assets. Many online resources are free, while others may require subscriptions. Taxpayers can access similar resources to better understand their own financial situations. Additionally, the IRS partners with companies for locator services, including credit bureau services and tax research.

Asset Locator Analysis

IRS agents are required to conduct thorough public record searches, both online and in person, to locate taxpayers and their assets. This is mandatory for every case. The national asset locator tool provides easy access to public records like real estate transactions and vehicle registrations. This tool, combined with extensive Internet resources, helps agents maintain high standards of case management and customer service.

Comprehensive Tax Law Research

To support their investigations, the IRS has contracts with providers of tax and legal research services. While agents could use general search engines like Google, they rely on specialized commercial research services tailored for IRS operations. These tools provide access to a vast database of tax law materials, ensuring thorough and efficient research, particularly for complex cases.

Real Property Records

Real property records are crucial for identifying taxpayers and their significant assets. Many of these records are now available online, making it easier for agents to gather information. Even though not all jurisdictions have fully automated records, numerous counties provide access directly through their courthouses, allowing the IRS to quickly locate property information nationwide.

Department of Motor Vehicles (DMV) Records

Every state has a Department of Motor Vehicles (DMV) that requires residents to register their vehicles and hold valid driver’s licenses. This information serves as an effective tool for locating individuals, particularly those who have not filed tax returns. While the availability of data varies by state, the IRS can access driver information, vehicle ownership, and lien holder details to help locate assets.

Summons Enforcement

The IRS has the authority to issue summons and subpoenas to obtain records from third parties. For instance, by accessing credit card records, the IRS can request loan applications to uncover listed assets

Uniform Commercial Code (UCC) Filings

National UCC filing records contain vital information regarding commercial lien filings. These records, typically found in the capital city of each state, can help trace assets secured by businesses for loans or to understand financial relationships. Information available includes:

  • Debtor name and address
  • Filing date and state
  • Document number
  • Legal type
  • Secured parties’ names and addresses
  • Number of secured parties and debtor parties
  • Number of filings
  • List of collateral