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Discussion Forum Index --> Basic Tax Questions --> Tax levy
Discussion Forum Index --> Tax Questions --> Tax levy
Gregdean (talk|edits) said:
| 7 July 2008
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| What's the chance of the IRS levying against a personal residence? According to the AICPA, "a taxpayer's principal residence is exempt from levy unless a judge or magistrate of a federal district court approves the levy in writing". I understand that they will generaly file a lien and these can stay with the property for years.
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Blrgcpa (talk|edits) said:
| 7 July 2008
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| An IRS tax lein goes with the property. Usually the property can't be sold with it.
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Dingodile (talk|edits) said:
| 7 July 2008
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| Liens and Levy actions are substantially different. A tax lien will certainly be filed if it has not already. The home can still be sold, but the proceeds must first go to the IRS and any other secured creditors before the homeowners receive anything. It's possible (this will likely depend upon how long the IRS has been attempting to collect the debt) the case will be referred to the US Dept. of Justice attorneys to initiate and action to reduce the assessment to a judgment and ultimately force the sale of the home. Also don't count on your particular state's homestead exemption, it will not protect against and IRS lien.
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Mscash (talk|edits) said:
| 8 July 2008
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| IRS through the Department of Justice, must get a court order before it can seize and sell a taxpayer's personal residence. This will be pretty unusual. Other collection action may "encourage" the taxpayer to voluntarily list the property for sale. This is better for everybody.
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Dingodile (talk|edits) said:
| 8 July 2008
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| Even if DOJ obtains an order allowing them to foreclose the judgment, the order quite often allows the T/P a definite amount of time to complete a voluntary sale. I have a client who has until this October to voluntarily sell his home before the government may initiate a foreclosure sale.
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