While the IRS can legally seize your house to pay for unpaid taxes, the IRS usually attempts to collect from other assets prior to seizing your home; seizing your home is often seen as a last resort option. Most commonly, the IRS will file a Notice of Federal Tax Lien, which informs others that the IRS has a legal interest in your property, and prevents you from selling it without paying the IRS. The IRS will also take a number of steps before taking action to seize your home – they will attempt to collect by other means, attempt to inform you that their next step is to take action against your house, and discuss other options with you to see if there are options besides seizing your home.
However, if the IRS has exhausted other means of collection, they may take action to seize and sell your home. In order to do this, they must file a foreclosure lawsuit, to foreclose on their federal tax lien; the IRS is required to give you notice of this lawsuit.
Further, the IRS is more likely to seize a residence that is not your principal residence, like a second home.
Worried the IRS is Coming for Your Home? Tax Attorney Komor Can Help
If you have received notice that the IRS is planning to file suit to seize your home, contact us for a free consultation to discuss potential options for avoiding this dire outcome.