Let’s say that the IRS informed you that you owe the agency money for back taxes or tax debt. This isn’t exactly rare, but it isn’t exactly common either. When you are informed, it will likely take some time before you are able to get a handle on the situation that has presented to you.
Sometimes, though, the individual who has been informed of this tax debt will bury his or her head in the sand, so to speak. This leads to constant procrastination of a very important issue. If the procrastination lasts long enough, the IRS will, understandably, take some serious action against the in-debt individual. Thus, the collection process may begin, wherein the in-debt individual can see his or her assets seized to make up for the money they owe the IRS.
Now, the question is: what assets can the IRS take? Surely they couldn’t claim your most prized assets, such as your home or business — could they?
Well, much to your presumed dismay, they actually can. The IRS is allowed to seize your home or business to repay tax debt per the Internal Revenue Service Restructuring and Reform Act of 1998.
Even though this obviously terrible for taxpayers, it is important to note that when the IRS seizes these assets from an individual, the seizure may be done improperly or illegally. There are certainly options for the individual that could allow them to successfully appeal the seizure of these crucial assets. If you are put in this unfortunate situation, consult with an experienced tax attorney to start building your case.
Source: FindLaw, “Can the IRS Take Your Home or Business?,” Accessed July 14, 2015
