Monday, September 8, 2008

Liens—Will The IRS Take My House?

Well, it depends! If you owe less than $5000, then no. The IRS can't sieze any real property used by you to satisfy a tax liability. However if you have larger liability, especially when you're a business, then you not only have a Revenue Officer but you do have an applied lien. The IRS can't seize any property if the court appointed judge does sign a written approval over the property. If this happens then the IRS can seize the property to protect the its interest until the debt is paid in full.

If you are planning on selling your home, you will need to get a lien subordination in order to do so. Whatever profits are set to be made will first have to be rectified with the lenders and then the IRS. You will then have penalties and interest attached to the additional liability if the tax liability has not been satisfied.

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