From the Tax Law Offices of David W. Klasing - Can the IRS Take Your House in California?

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Tax Law Offices of David W. Klasing, PC

Jul 21, 2020, 06:37 ET

IRVINE, Calif., July 21, 2020 /PRNewswire/ -- The answer to this question is yes. The IRS can seize some of your property, including your house if you owe back taxes and are not complying with any payment plan you may have entered. This is known as a tax levy or tax garnishment. Typically, the IRS will start by garnishing your wages, salary, or commission. If this is insufficient or if you are not employed, they may proceed to seize money and assets in your bank or retirement accounts. Usually, a bank will hold the funds in your account for 21 days to allow for any disputes as to who owns the funds to be worked out, which may give you time to work with the IRS to find another way to remedy the situation. The amount available to be seized from a retirement account or social security will depend on whether you have a vested right.

The IRS will also have the ability to go after property, such as your home and your car. However, before the IRS can sell these items, they will have to calculate a minimum bidding price, which you can challenge. If there are leftover funds after the house is sold and your tax debt has been paid off, you will be entitled to receive it.

A skilled tax attorney like those at the Tax Law Offices of David W. Klasing will be able to assess your situation and choose between several different options, including negotiating an alternative arrangement with the IRS. This can be done by filing a request for a due process hearing through the IRS Collection Due Process Department (CDD) within 30 days of receiving the final notice of a tax garnishment or levy. This appeal hearing will typically be scheduled within 60 to 90 days.

The best way to prevent a situation where the IRS wants to seize your property through a tax levy or garnishment is to hire an experienced tax professional like those at the Tax Law Offices of David W. Klasing. To schedule a reduced rate initial consultation, call our firm at (800) 681-1295 or book ONLINE today.

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Public Contact: Dave Klasing Esq. M.S.-Tax CPA, [email protected]

SOURCE Tax Law Offices of David W. Klasing, PC