Can the IRS take my house? It’s a scary question, and the short answer is “sometimes—but it’s rare.” The IRS has powerful collection tools, yet taking a primary home requires extra legal steps and usually happens only after other options fail. This guide explains when it could happen, how liens differ from levies, and what Baltimore homeowners can do to protect their home
Can the IRS take my house? Lien vs. levy explained
Think of a lien as the government’s claim on your property when taxes go unpaid; a levy is the actual taking or sale. A lien can attach to your real estate (including your house). A levy is the step that liquidates property to pay the debt. IRS-Understanding a federal tax lien
Before the IRS levies, it typically must (1) assess the tax and send a bill, (2) mail a Final Notice of Intent to Levy and Notice of Your Right to a Hearing, and (3) wait the required time or complete the hearing process.
Can the IRS take my house if it’s my primary residence?
For a principal residence, the IRS can proceed only with a court’s written approval under 26 U.S.C. §6334(e). That safeguard exists alongside your Taxpayer Bill of Rights, including due process and the right to privacy. Property exempt from levy
What this means in real life:
- The IRS first tries other ways to collect (wages, bank accounts, payment plans).
- If those fail and the debt is significant, the government may ask a federal judge to approve a levy on a principal residence.
- If a home is seized, the IRS follows strict sale procedures and gives you a chance to challenge the valuation.
Important: The bar is higher for your primary home than for other real estate. Rental or investment property does not have the same court-approval protection.
How to protect your home if you owe the IRS
You usually have options before a home is ever on the table:
- Get compliant: file any missing returns so the IRS can work with you.
- Payment plan (Installment Agreement): spread payments over time and stop most levies once approved.
- Offer in Compromise (OIC): settle for less than you owe if you meet strict financial criteria. (Check the OIC page )
- Currently Not Collectible: If you genuinely can’t pay now, you can request a temporary pause in collection.
- Appeal rights: if you receive a Final Notice of Intent to Levy, you can request a hearing by the deadline on the notice.
Baltimore guide: what we do if your house is at risk
At Tax Defense Experts (Baltimore), we:
- Review liens, notices, and deadlines immediately.
- Propose the least intrusive solution that still meets IRS rules (payment plan, OIC, CNC)
- Prepare financials the way the IRS expects (Form 433 data, documentation)
- Handle calls and negotiations so you’re not dealing with collections alone.
Free 45-minute consultation—let’s map the safest path forward.
Notices to watch for (so you’re never surprised)
- IRS bills and reminder notices
- A Final Notice of Intent to Levy and Notice of Your Right to a Hearing (critical—time-sensitive)
If you receive those, act quickly. Waiting makes home protection harder.
FAQs
Can the IRS take my house for a small balance?
It’s unlikely. Seizures are uncommon and generally reserved for larger debts where other collection methods have failed. The IRS must meet specific legal steps first.
Does a lien mean I’ll lose my home?
No. A lien claims an interest; a levy is what takes property. With proper counseling, many homeowners resolve liens through payment plans, OIC, or refinancing strategies. Understanding a federal tax lien
What if I’m trying to sell or refinance?
There are IRS processes for discharge or subordination of a federal tax lien in specific situations. Get professional help early—timing and paperwork matter.
Next steps (Baltimore residents & small businesses)
If you’re behind and worried, we’ll check your eligibility for a payment plan or OIC and work to keep your home out of play.
If you just received a levy warning, call us today for a Free 45-minute consultation.