“Can the IRS take away my home?”
“Can the IRS sell my home and take the money?”
The above two questions, along with being thrown in jail, are some of the biggest fears my clients have when it comes to owing back taxes.
In most cases I gently chuckle and say it is very rare for the IRS to take your home. Under the tax code, the IRS has to get the approval of a federal judge before your home can be sold and they typically won’t allow it unless you owe a few hundred thousand in taxes.
Then I read a case today that is allowing the IRS to force a sale for a tax debt of less than $50,000.
Yeah, $50,000 is a lot of money, but a home is kind of a sacred place at the same time. Its a shame to see someone’s home go for such a relatively small amount. Its a bigger shame the home owner’s evidently didn’t try to work things out. They probably could have qualified for a streamlined installment agreement with the IRS and made monthly payments.
If you get any love letters from the IRS, don’t put them off. Take the letters to your tax advisor and let them start to help you with your tax problem.