IRS Home Seizure and You
One of the scariest things that comes with owing the IRS is the feeling that you’re on the brink of losing everything. And, the truth is, if you don’t pay your tax bill and you have assets, you are at risk of not only penalties and fees, but can also take your assets. If you owe back taxes and you’re wondering exactly what’s at stake, here’s what you should know about whether asset confiscations and IRS home seizure.
The IRS Can Take Your Home
It’s no secret that the IRS can seize your home as part of collection efforts. However, the good news is that because of the Taxpayer’s Bill of Rights, seizing primary residences is actually discouraged. This means that if the IRS were to take your home, there would be a good deal of negative publicity, which isn’t something the IRS usually wants to deal with.
Further, seizing a home is often the very last resort. For instance, the IRS has to first get a court order, which you can contest. And, the collection division usually tries many times to work out an arrangement with the taxpayer before resorting to taking a home. This is just one reason that it’s important to communicate with the organization rather than ignore phone calls or correspondence. It is also a good idea to avoid lying about your income or hiding assets.
Also keep in mind that if you owe less than $5,000, the IRS generally won’t take such a drastic measure as seizing your house. However, it’s still important to communicate with the IRS and work out a payment arrangement, even if your tax bill is small.
What Happens in the IRS Home Seizure Process?
If the IRS does end up pursuing seizure of your home, you still have rights. For instance, the IRS must ask your permission to enter the premises, and you certainly don’t have to grant permission. If you refuse to allow the agents on the premises, the IRS will then need to apply for an order with the US District Court Judge to be approved before IRS agents can return to your property.
At this point, the seizure process can move quickly. There’s a good chance IRS agents will show up at your residence with weapons and will be able to padlock the house and post notices to the public. Although you will be permitted to collect your personal items, if your tax issue reaches this point, your home will no longer be yours.
An Experienced NYC Tax Attorney Can Help
Owing the IRS any amount of money can be overwhelming and frightening. However, if you are afraid of a possible IRS home seizure, the attorneys of Mackay, Caswell & Callahan, P.C. can help make sure you retain your rights. Don’t risk losing your home or other assets by attempting to manage a difficult situation alone.
For a consultation, fill out our online contact form or call 844-MCC-4TAX (622-4829). Speak with an experienced NYC tax attorney or one from one of our other offices in Albany, Rochester, Syracuse, Utica, or Watertown today.
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