Can the IRS Take My Home?Stephen A Weisberg
If you haven’t been paying your tax bill and you owe thousands in back taxes, you may be worried about whether the IRS can take your house. The answer to your question is yes, the IRS can take your home. However, it would take a lot for the IRS to go that route.
While the IRS does have the right to seize your personal property for failure to pay taxes, it will explore every other option for recovering the tax debt you owe before taking your primary residence.
Why would the IRS take your house? Because it would use the money from the sale of your home to pay off your tax debt.
Making a Good Faith Effort
If you can’t pay your full tax bill, there are many ways to resolve your tax debt without burying your head in the sand. If you make a good faith effort to pay your taxes, you may be less likely to lose your home or other property of great value to you.
The IRS offers several programs to taxpayers who can’t pay their debts, such as a settlement option called an offer in compromise, an installment agreement (monthly payments, rather than paying all at once), and various other options.
Ignoring the mail and calls from collectors and refusing to acknowledge your debts will likely just cause you more trouble.
How to Prevent IRS Home Seizure
Yes, the IRS can take your home. There is actually little that the IRS doesn’t have the right to seize when you owe a large amount in back taxes. However, the Internal Revenue Service is more willing than you might think to work out your tax debt in other ways.
If you keep up steady communication with collectors and make honest efforts to get current on your taxes, then you may be far less likely to lose your home. The following are some of the programs the IRS offers to those who are struggling to pay their taxes:
- Offer in Compromise – This is a settlement of your tax debt. The IRS may be willing to reach an agreement in which you pay less than the full amount of your taxes and the rest is forgiven.
- Installment Agreements – Installment agreements are a monthly payment option for your tax bill.
- Currently Not Collectible – This is when you prove to the IRS that you truly don’t have the money to pay your bill at the present time. The agency may then change the status of your account to Currently Not Collectible.
Schedule Your Free Tax Debt Analysis
When you discover that you owe a lot of money in taxes, you may be overwhelmed by the debt and not want to deal with it, or you may simply not have the money to pay your tax bill. No matter what situation has put you behind on your taxes, there are ways to address the problem before things get any worse and your property is seized.
A tax lawyer can examine your tax situation and come up with a solution that will work for you. Maybe a settlement, a payment plan, or another program will be right for you, but first you have to make the call to a lawyer. To reach the W Tax Group, complete the online contact form on this page or give us a call at 1-877-500-4930.
Lead Tax Attorney, The W Tax Group