Owing money to your friend is a lot different from owing money to a loan shark. Equally, owing money to a credit card company is a lot different from owing money to the IRS. While your friend or a credit card company may nudge you with phone calls and reminders to repay your debt to them, a loan shark or the IRS will immediately begin aggressive and oftentimes crippling collection efforts.
The IRS will first send you a notice about your tax debt and demand payment in full. If, after 30 days, the debt is not paid in full and no arrangements have been made to do so, collection efforts begin. There are no exceptions to this rule. Whether the letter was received or not, whether you were sick or not, whether you were in a car accident or not, collection efforts will begin if the IRS has not made contact with you by their 30 day deadline.
These collection efforts will range anywhere from a wage garnishment all the way up to seizing your property. The IRS will assess your financial portfolio (your income, your savings, your property, etc) and determine the most effective way to obtain the debt.
Can The IRS Take Your Primary Residence?
The IRS does have the ability to seize your property and yes, that can include the home you live in. However, this is not their usual preferred method to collect your debt. If they seize your home, they have to sell it and deal with the hassle of monies distribution. They tend to try to avoid this complicated process by seizing the cash out of your savings account or retirement instead. However, if the tax debt is very old and the IRS has been previously unsuccessful in obtaining payment after a significant effort, they will not hesitate to do so, especially if they feel this is the only way to obtain their debt.
Bear in mind that it must make sense to the IRS. If you own your home free and clear, this is a viable option for them. However, if you owe $250,000 on your home and it’s only worth $250,000, this would not make sense for them.
Options
Believe it or not, the big, bad IRS doesn’t want to have to seize your property in order to get payment. They’d rather see you pay your debt in full, which requires the least amount of effort on their part. They’d rather levy your bank account for the cash or garnish your wages than seize your home and deal with the many steps that it would entail to get their debt. All it takes is a little cooperation from the taxpayer and the IRS is happy.
They may accept an installment agreement. Upon hearing your reason for being so far behind for so long, they may decide to remove your penalties. Depending on the status of your hardship, they may decide to charge you less than your current debt and call it even. There are plenty of ways for your tax issue to be resolved but sweeping it under the rug will only find you facing the most severe consequences (like the seizure of your home.)
Get Help
IRS Tax Relief Now specializes in tax resolution and IRS representation. You don’t have to deal with the IRS alone and it’s generally not recommended. Hire an Enrolled Agent because of their familiarity of the IRS. Enrolled Agents are the only tax professional licensed by the IRS to represent taxpayers. In addition, the IRS requires Enrolled Agents to actively remain abreast of the most recent tax laws in order to maintain their license. No other tax professional is held accountable for their tax knowledge and representation like the Enrolled Agent.
Our Enrolled Agents have several years of comprehensive experience with the IRS. We hold an A+ rating at the Better Business Bureau and invite you to see it for yourself through the link posted on our home page. Our tax professionals do not adhere to business hours. Our schedules are arranged so that someone is available to chat with you 24 hours a day, seven days a week. Contact us today for your free evaluation of your tax issue. You have nothing to lose and you’ll sleep better tonight. We’re waiting for your call.
