Can the IRS Take My House?

Yes — the IRS has the legal authority to seize and sell your home to satisfy unpaid taxes, but it's relatively rare and requires approval from a federal magistrate judge. Before seizing real property, the IRS must send multiple notices and give you the opportunity to enter a payment arrangement. The IRS generally pursues a home seizure only as a last resort after other collection methods have failed. If you have significant equity, the IRS is more likely to take action than if your home is underwater. Taking steps early — like entering a payment plan — is the best way to prevent your home from being put at risk.