Taxes are unavoidable, but what happens when unpaid tax debts put your house at risk? Many people wonder, can the IRS make you homeless? While the IRS typically prioritizes the seizure of assets other than a person’s house or primary vehicle, it does have the authority to take a home if no other resources are available to settle a debt. Seizing a house is rare and does require a court order. However, the possibility of losing your home is real if you have major tax liabilities. To protect your house, understanding your rights and the IRS’s limits is the first step. Fortunately, if you have unresolved tax debt and your home is in jeopardy, there are ways to protect your most valuable asset. Taking proactive steps to resolve your tax issues will not only give you a sense of control over your situation but will also go a long way in keeping your house.

How Home Seizures Happen

The IRS can seize property to collect unpaid taxes as part of its levy authority. Below is an outline of the key steps and considerations in the home seizure process:

1. Preliminary Actions:

1. • The IRS files a Notice of Federal Tax Lien (NFTL) to secure its claim and prevent property transfers by the taxpayer.

1. • Seizing a principal residence requires a court order. The IRS must get approval from a district court judge before it can go through the seizure process.

2. Notice of Seizure:

2. • After seizing the property, the IRS must deliver or leave a written seizure notice at the owner’s residence or business.

2. • If the owner cannot be located or has no local address, the IRS must mail the notice to the last known address within two business days of the seizure.

3. Constructive Possession:

3. • The IRS may physically take tangible property, like your house or vehicle. In the case of a house seizure, the IRS can put a padlock on it to show that the agency has taken possession of it.

4. After Seizure:

4. • The U.S. Government owns the seized property. Any unauthorized attempt to reclaim the property is a criminal offense.

4. • You can ask that the IRS sell the house within 60 days of the seizure, and the agency must accommodate this expedited sale request unless it believes that selling it quickly is not in the government’s best interest.

5. Rights and Protections:

5. • Specific exemptions apply, such as properties with tax liability under $5,000 or certain essential personal and business assets.
   • I.R.C. §6331(d) requires the IRS to provide timely notice to taxpayers no less than 30 calendar days before the day of a levy.  In addition, I.R.C. §6330, requires the IRS to notify taxpayers of their right to a Collection Due Process (CDP) hearing with the IRS Independent Office of Appeals (Appeals) before the first levy on a delinquent tax claim.

The IRS follows these procedural safeguards to ensure compliance with federal laws while enforcing tax collection.

Protecting Your Home From the IRS

Facing the threat of home seizure by the IRS is a stressful and overwhelming experience. However, you don’t have to face it alone. At Tax Workout Group, we specialize in protecting taxpayers like you from losing their most valuable asset—their home.

As mentioned, the IRS must follow strict legal procedures, including getting court approval to take a principal residence. Ensuring that these procedures have been fully complied with often requires skilled tax professionals to protect your rights. That’s where we come in.

Our team of experienced tax attorneys can:

1. Stop the Process Before It Begins: We can identify errors in the IRS’s actions by ensuring it follows all legal protocols. For example, if the agency improperly files the Notice of Federal Tax Lien (NFTL), the error can halt the seizure process.
2. Utilize bankruptcy to halt the IRS collection efforts and retain your property.
3. Negotiate with the taxing agency and pursue an alternative resolution of your tax claim(s) under an installment agreement, offer in compromise, or hardship exemption (i.e., the seizure creates economic hardship and prevents you from paying basic, reasonable living expenses).
4. Advocate for You: If the IRS has already begun the seizure process, we’ll pursue all administrative hearing and appeals rights to keep your house in your hands.

The IRS is required to release a seizure if it can be established that:

·        You paid the amount you owe,

·        The period for collection ended before the seizure occurred,

·        Releasing the seizure will facilitate the payment of your taxes,

·        The property’s value is more than the amount owed, and releasing the seizure will not hinder our ability to collect the amount owed.

At Tax Workout Group, we believe no family should lose their home without a fight. We combine deep knowledge of tax laws with compassionate, results-driven advocacy to help clients resolve tax issues efficiently and effectively. Call Us to Ensure Your Home is Protected

The IRS may seem unstoppable, but with Tax Workout Group on your side, you can protect your home and take control of your financial future. Tax Workout Group specializes in dealing with complex IRS matters, helping you find every way possible to retain the assets you’ve worked hard to obtain.  We are a modern tax law firm comprised of aggressive attorneys dedicated to delivering innovative and strategic results.  Whether the IRS is in the process of seizing your house or you are worried it will happen soon, don’t wait. Every moment counts when your home is at risk.

Tax Workout Group can help you take control and find peace of mind. Contact us today to schedule a confidential consultation. Together, we’ll come up with a strategy to protect what matters most—your home and your family’s security