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IRS Auctions: What Happens to Property Seized by the IRS?

tThe Internal Revenue Service (IRS) can initiate the collection and forfeiture process United State Taxpayers’ items in case they fail to file tax returns or violate tax-related laws.

They can seize personal property such as household goods, jewelry, and electronics, as well as homes, interests in land, stocks, and other securities.

This means that practically any type of asset that a taxpayer owns can be seized by the IRS if they fail to pay their federal or state taxes.

What happens to property seized by the IRS?

After taking possession of your property, the IRS follows a specific process for selling your interest and applying the sale costs to your tax debt.

“Before selling your property, the IRS will calculate a minimum bid price,” explains the official IRS website.

The IRS will also provide you with a copy of the calculation and give you an opportunity to contest the fair market value determination. The IRS will then provide you with the Notice of Sale and announce the pending sale to the public, usually through local newspapers or flyers in public places.

After you give public notice, the IRS will generally wait at least 10 days before selling your property. The money from the sale pays the cost of forfeiture and sale of the property and, eventually, your tax debt. If there is money left over from the sale after you pay off your tax debt, the IRS will tell you how Refund.

Can you recover your confiscated property?

The answer is yes. To do this, you need to contact the IRS, resolve your tax liability and request a release, which can be granted in the event that it results in economic hardship.

“If the IRS denies your request to release the forfeiture, you may appeal that decision,” the IRS press release reads.

“You can appeal before or after the IRS forfeiture and sale of your vehicle(s), real estate, or other property. After the forfeiture proceeds are sent to the IRS, you can file a claim to have them returned to you.”

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