A friend of mine owes taxes on her home from 2006. She said that if she doesn't pay by the end of the month that they will sue her? Does the government sue for stuff like this or do they just tack on a bunch of penalties and interest? Can they take her house?
2007-06-21 11:11:50 · 11 answers · asked by Blitz 3 in Business & Finance ➔ Taxes ➔ United States
They won't sue her, they will use the law in another way, they will forclose... in order to pay the back taxes so she will be with out residence unless she does sometghing about it. I would suggest getting a lone and paying her taxes.
2007-06-21 11:22:54 · answer #1 · answered by patriot_corps 2 · 0⤊ 0⤋
What most local governments do is put in a lien for back taxes with the IRS and your resident State (assuming your state has income tax) so that any refunds you have due are paid directly to them on the back taxes. Then they put a lien on your property so if it is ever sold they get their money first. If you let this build up for numerous years or they are aggressive at their tax collections, they have the legal right to force a sale of your property to pay the taxes owed. Depending on how aggressive the locality is, they can get debtor judgment against you and try to collect on this with a garnishment on your wages, etc. Bottom-line is that the taxing authorities - IRS, state and local - have more power to collect their money than regular creditors. Therefore, I would advise trying to keep current on all your tax payments. Besides, the penalties and interest are a killer! Tell your friend to try to work out a payment plan. But if they do, be sure to make the payments and keep the new taxes current. They will still owe penalty and interest, but may stop a judgment. With R/E taxes increasing with the last few year R/E boom, more and more people will have this problem of paying their R/E taxes. If she ever refinances her property, try to get an escrow for real estate taxes and insurances. For some of us, paying monthly is easier than a large lump-sum. Good luck!
2007-06-21 18:31:17 · answer #2 · answered by Julie_CG 1 · 0⤊ 1⤋
Some local governments SELL tax liens. That means someone pays them for the right to collect the back taxes owed on the home. If that is the case, they owner of the tax lien CAN sue you and may be able to foreclose on the house.
2007-06-21 20:52:01 · answer #3 · answered by STEVEN F 7 · 1⤊ 0⤋
I'm not an attoney nor do I work for the IRS, so this is a best-guess.
Yes, they can take her house for taxes owed. They'd sell it at auction, where it probably would go below market value, take out what she owes (including penalties and interest) from the proceeds, and give her the rest.
I don't think the government ordinarily seeks remedy for unpaid taxes in the courts.
2007-06-21 18:18:25 · answer #4 · answered by Anonymous · 0⤊ 0⤋
I think they can do anything they want. She should get a lawyer asap. My friend owed taxes and the govt went in and cleaned out her bank account and she bounced a whole lotta checks. She was really screwed over by the IRS. I would think they could put a lien on her house at the very least...which would mean if she were to sell it they could collect their money off the top. Yikes how horrid for her. Good luck to her.
2007-06-21 18:16:33 · answer #5 · answered by La_Liona 4 · 0⤊ 0⤋
On a home they would place a lien against your home. After repeated attempts to collect, they can force you to sell your home.
Best bet is to contact them and work somethng out. Normally, they are willing to work out a reasonable request. You'll have to stay up on the current taxes and start paying the back taxes. The penaty and interest can add up real quick, so I wouldn't delay in getting this taken care of.
2007-06-21 19:42:40 · answer #6 · answered by Tim 7 · 0⤊ 0⤋
Eventually they'll take the house if she doesn't pay her property taxes. There are already penalties and interest tacked on, and those continue to add in the meantime.
2007-06-21 18:39:32 · answer #7 · answered by Judy 7 · 0⤊ 0⤋
If she owns the house they can take it and sale it for what she owes. They can also garnish her wages or take whatever she owns. But this only happens with the IRS when you owe taxes on earned income. She probably owe county taxes on her house. She needs to go and talk to them and to get and extension. Last resort second mortgage. Maybe she needs to have a rent party.
2007-06-21 18:32:31 · answer #8 · answered by Josephine C 3 · 0⤊ 0⤋
Depends on whether they were property or special purpose taxes. They can put a lien on her house. They can also push for a judgement. Most judgements consist of a county-run auction of real property to make up for those costs. Long story short, she's boned.
2007-06-21 18:22:39 · answer #9 · answered by Brent 2 · 0⤊ 0⤋
The government will confiscate her home and auction it off for the amount owed. They will first take her to court and order her to pay a ridiculous amount before a date too soon and as soon as she doesn't pay they will give her the boot.
2007-06-21 18:22:34 · answer #10 · answered by nappyhdfatgrl 3 · 0⤊ 0⤋