Can the IRS Take Your Home If You Don't Pay Your Taxes? Here’s How to Stop a Tax Lien or Levy

If you fall behind on your taxes, will the IRS take your house? 

That’s a terrifying question, but the truth is, yes.

The IRS can seize your home, but under certain conditions. 

And if the IRS takes your home, you do have options – but the sooner you act, the better chance you have of keeping your home.

Tax Attorneys of America explains the process of tax lien or levy, how it works, and the exact steps you can take right now to protect your home.

IRS Tax Liens and Levy: What’s the Difference?

A tax lien is a legal document sent by the IRS before it can take away any of your assets. 

A tax levy, on the other hand, is created when you don’t respond to the tax lien.

Your assets, such as your bank account, wages, and house, are at risk once a levy is sent.

IRS Tax Lien on Your House: What is a Tax Lien?

An IRS lien is a legal claim the IRS files for the right to your property.

• Your property is not taken at that time.
• A lien secures the IRS's right to collect your property if you sell or refinance your home.
• Liens negatively impact your credit and are public record.

IRS Tax Levy on Your House: What is a Tax Levy?

An IRS tax levy is the actual process of the IRS seizing your home. 

• An IRS levy is the seizure of property.
• Levies typically happen only after multiple notices go ignored.
• The IRS levy can include emptying bank accounts, garnishing wages, or seizing homes.

What's the Main Difference Between a Tax Lien and a Tax Levy?

Made simple, a tax lien is a legal document to claim your property.

A tax levy is the seizure of your property. 

A tax lien on your home results in a levy if no attempt to resolve your tax debt is made. The IRS then has the legal right to seize your property, garnish wages, and empty bank accounts to settle the unpaid debt.

The process between lien and levy is not immediate, but it is important to learn how to stop the IRS lien and levy process.

Can the IRS Take My Home?

While rare, yes, the IRS can take your home and other property, but it’s rare and a last resort. 

The IRS is a government entity and must follow strict legal steps, including:

1. Sending multiple notices.
2. Giving you a chance to appeal.
3. Getting supervisor approval.
4. Offering alternatives like payment plans or settlements.
   
   

If you do get a Final Notice of Intent to Levy, do not ignore it. That’s the last step before legal seizure.

How to Stop a Tax Lien or Levy — TAA’s Advice

Tax Attorneys of America helps taxpayers resolve these issues before they escalate. Here is the recommended plan of action if you’ve received a lien notice and fear a levy.

1. Respond Immediately

Tax liens and levies do not go away. The longer you wait, the fewer options you have. 

2. File Any Missing Tax Returns

Make sure your IRS filing is current — even if you can’t afford to pay right now, get up to date, or you cannot negotiate with the IRS.

3. Contact a Tax Professional

A licensed tax relief professional can represent you before the IRS, help you get current with missing tax returns, stop collections, and negotiate directly on your behalf.

Tip: TAA offers free phone consultations. Click here to schedule yours.

What Do You Have To Protect Your Home?

There are legal ways to resolve your debt without losing your home, even if you owe back taxes:

Installment Plans

Plans are affordable monthly payments made to the IRS to pay off what you owe over an extended time. This way, levies are prevented because you are seeking to improve your situation with the IRS.

Offer in Compromise

Another option is to settle your tax debt for less than you owe, but you have to see if you qualify due to financial hardship.

Lien Withdrawal or Subordination

In some cases, if you refinance or sell your property, the IRS may remove or relax a lien on your house.

Appeals and Due Process

Finally, you do have a legal right to appeal most IRS actions. This can buy you more time and create more options for resolution.

Warning Signs You Shouldn't Ignore: When to Get Lien Help

• You received a Notice of Federal Tax Lien
  
  
• You were sent a Final Notice of Intent to Levy
  
  
• You’ve consistently missed multiple tax deadlines
  
  
• IRS collections or a revenue officer is contacting you

Final Thoughts: Act Now Before It’s Too Late

To recap, yes, the IRS can take your house — but it is not an instant process. 

The IRS will not take your home overnight. The IRS is required to send several notices before extreme measures are used, like a lien or levy on your home. 

Homeowners who actively seek to resolve their tax debt and remove their current house lien can avoid the worst-case scenario of a levy.

Bottom line — if you owe back taxes, don’t wait for a notice on your door.

And if you already have a notice, whether it’s a tax lien on your house or an IRS levy, talk to a professional. 

Tax experts are qualified to help improve your situation and negotiate with the IRS on your behalf. 

Tax Attorneys of America can help you with your IRS tax lien, IRS levy, settle your debt, stop the IRS, and most importantly, protect your home.