Or is that just a threat that they don't actually follow through with?
Did it ever happen to someone in your neighborhood?
2007-02-28 08:16:03 · 5 answers · asked by Just Mee 2 in Business & Finance ➔ Taxes ➔ United States
It can happen but it is usually only used as a last resort. For one thing, if there is a mortgage on the property it makes things very messy from a legal standpoint since the lender is an innocent party to the taking.
A much more common tactic is for the IRS to place a tax lien on the property and just wait for a sale. The lien serves as notice to a buyer that taxes are owed and that the IRS can exercise their rights at any time.
As a practical matter, that's a non-event as long as there enough proceeds from the sale to cover the IRS and any outstanding mortgage debt. The closing agent (title company or attorney) just pays the IRS their due and divvies up whatever is left to the appropriate parties and hands over clear title to the new owner.
I've bought two homes that had IRS tax liens on them and it added a day or two to the closing while the title company waited for the bill from the IRS. The sellers walked away with very little to show but they no longer owed the IRS either.
2007-02-28 10:36:00 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋
It's true! It happened to a friend of mine! He owed the IRS back taxes, and they gave him a chance to pay. When he failed to pay, they went in and not only took his home, but his business too!It's true, we only need to die and pay taxes while we are here on this earth!!
2007-02-28 08:37:57 · answer #2 · answered by sue d 4 · 0⤊ 0⤋
They will if someone totally disregards their obligations to them. If you owe them money you better pay up or at least make payments or something. Usually if you work with them you can come to some accomodation. But if you dont they can and will take everything.
2007-02-28 08:31:33 · answer #3 · answered by Amberlyn4 3 · 0⤊ 0⤋
It has actually happened and will happen again. The IRS can and do seize property as well as bank accounts so do not risk it.
2007-02-28 08:23:00 · answer #4 · answered by Akbar B 6 · 4⤊ 0⤋
bro, the IRS will take everything from you like Saddam had taken things from people except this is democracy. They take it without physically leaving you with bruises.
2007-02-28 08:22:10 · answer #5 · answered by angelino911 2 · 0⤊ 2⤋