Can the IRS take away your IRA Pt II

Earlier in the month I pointed out an article on the subject of if the IRS can take away your IRA.

For some reason people seem to be astounded and incensed the IRS can take away their retirement plan.  Keep in mind the IRS has some pretty strong powers, in particular the power to levy (legal speak for take away), “upon all property and rights to property” a taxpayer has.

Since an IRA is property of the taxpayer the IRS has the right to levy on that asset.  Don’t think this is true?  Here is a memo talking about how the IRS can take away your IRA.

The key point to keep in mind is the phrase used in the memo about how the IRS can , “step into the shoes of the taxpayer and acquire whatever rights to the property the taxpayer possess”.  There are a number of strategies to use with IRAs that curtail the rights the IRA owner has, and thus curtail the rights of anyone who tries to take them away as well.