Can The IRS Take Your House If You Are A Business Owner With Back Taxes?
Short answer:
Absolutely.
I have had clients where the IRS threatened to do exactly that!
The longer answer?
It’s not the most common thing in the world, but it is definitely possible. When I have encountered the IRS threatening to take a taxpayer’s house, it was usually because:
1.) The taxpayer owed a massive amount (typically multiple 6 figures)
2.) They had been avoiding this issue for some time
3.) They had some decent equity in the home.
Note that the other thing on the IRS chopping block (that many people incorrectly assume is immune from seizure) is retirement accounts. I have interacted with IRS agents who have threatened to take these as well.
Your best shot at avoiding this outcome? Approach the IRS, and deal with the problem on your own terms. Don’t wait for them to come to you!