The IRS has the authority to seize assets in order to satisfy a taxpayer’s outstanding tax debt. This can include their purview to auction off of a taxpayer’s house.
If the IRS decides to seize and auction a taxpayer’s house, it will first issue a Notice of Intent to Levy and Notice of Your Right to a Hearing. This provides the taxpayer with an opportunity to contest the seizure and come to an alternate arrangement with the IRS to satisfy the tax debt. If the taxpayer does not contest the seizure or is unsuccessful in doing so, the IRS will proceed with the auction. The house will be advertised and made available for bidding by interested parties. The proceeds from the sale will be applied to the taxpayer’s outstanding tax debt.
It is important for taxpayers to be aware of their rights and options in the event of an IRS asset seizure, including the potential auction of their house. It may be possible to negotiate a payment plan or other resolution with the IRS to avoid the loss of their home. Taxpayers who are facing the potential seizure of their assets, including their house, should consult with a tax law firm for guidance and representation. A tax lawyer can provide advice and representation during the levy and hearing process and can work to protect the taxpayer’s rights and interests.
Key Takeaways:
- The IRS has the authority to seize and auction a taxpayer’s house in order to satisfy outstanding tax debt.
- It is important for taxpayers to be aware of their rights and options in this situation, and to seek the guidance of a tax law firm for assistance.
McCauley Law Offices Can Help!
This client came to us in jeopardy of losing their home in an IRS auction. Our experienced team was able to save his house from the IRS auction block! We can help you out of your Tax Jam too! We offer FREE, no-risk consultations. Contact us today and let us get the IRS off your back.
