Property Levy: The IRS Can Take Your House

The IRS has the ability to take your house from you for unpaid taxes. The IRS can use tax levy to take your house from you to cover the cost of the back taxes that you owe. In most cases they will sell your house and if the money used covers all of the back taxes, the left over money will be refunded to the taxpayer.

How a Property Levy Will Affect You

Understand that taking your house from you is a last resort type of thing the IRS will do. They understand that taking your home from you will cause you a lot of pain and suffering and would rather work out an arrangement with you to keep you in the system .They do not want to take everything you have because that is not what they are in the business of doing. If possible they will work with you to resolve your back taxes and come to an agreement on what you can afford to pay.

Getting Back On Track

There are a few things you can do to get back on track with the IRS and avoid having your home taken from you:

1. The first thing you will need to do is file your tax returns with the IRS. The IRS will charge you about ten times more for not filing and not paying your taxes at the same time. If you simply file your return and not pay your taxes you will be fined .5 percent per month instead of 5% per month for not doing both. This can add up to serious money over time if you are not careful. The IRS will generally not talk to you about your debt if you have unfiled tax returns. You must file them before they will work with you on reducing what you owe.

2. The next thing you always want to do is respond to the IRS when they send you letters and try and talk to you. It is important to let them know that you understand what is going on and are trying to work on it the best you can.

3. The last part to take care of is actually paying your taxes. The IRS will work with you if you are willing to work with them on paying in a timely way. Try and work with them to setup a payment plan that you can afford each month to start paying down your debt.

About Paul Gaulkin CPA

Paul Gaulkin is a Certified Public Accountant and enrolled with the U.S. Treasury to practice before the IRS. Mr. Gaulkin possesses unique technical knowledge in the process of securing relief for taxpayers nationwide with IRS and State tax problems. With an accounting degree from Florida International University, he is able to transform complex tax and accounting problems into easy to understand solutions.


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