IRS Advice on Business Use of Your Home
Besides "Real Property" and vehicles, can IRS take away private belongings? From inside your home?
Question
Besides "Real Property" and vehicles, can IRS take away private belongings? From inside your home?
My dad was a professional home builder for almost 30 years, had a great reputation, until a partner of his had done a dirty deed, and wiped out my father, along with another man. The thief went to prison for imbezzlement, however my father and this other man were ripped off by a couple hundred thousand dollars, so they had to file bankruptcy. He did not file his income taxes for almost 5 years due to depression (they say that bankruptcy can be as depressing as a death of a spouse/close loss in the family.) And I know it is against the law to not file him, but he had just lost everything he ever worked for in life. He is however, getting back on track, and has been the last 2 years with myself. He is going to work on cleaning up this IRS mess, he just needs to get a hold of a Tax Attorney. So in the meantime, he is just curious if they can take person property from inside the house? I know this sounds crazy...he is just wondering. Right now, all of the business we do, we use my name. And his vehicles are registed in MY name and HIS name. However, until this is cleared up, he is going to take his name off the reg, today. Any advice is wonderful thank you.
1 year ago - 5 answers
Best Answer
Chosen by Asker
Not only can the IRS take anything of value and auction it off, they can garnish 2/3rd's of your net paycheck. Your dad does not need a tax attorney, he needs a good CPA and fast. The IRS can go as far back into the past as they want to. You however can only get refunds on the past 3 years. When you fail to file your taxes for 5 years they will file them for you and trust me it won't be advantageous to you. I failed to file my income tax for 5 years beause # !. They always owed me at least $1,000 refund in previous years and # 2 I had been living in the Philippines and did not want to bother with it. BIG, HUGE MISTAKE. They garnished my sole source of income (my Navy Retirement cheak) by 2/3 rd's for 18 months. Eventually I recieved $8,000 in refunds but try living on 1/3 rd of your income. If I had lived anywhere but in a 3rd worlds country I would have starved.
Source(s)
Personal experiance and been through chapter 13 as well. Chapter 13 was a cakewalk paying 1/3 of my income as compared to the nightmare of having 2/3 rd's of my paycheck taken.
1 year ago
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Other Answers
If they sue and get a judgment, then they can start taking things and auctioning them off to settle the debt. However, the IRS usually won't take such drastic action if you are actively trying to fix the situation. As long as you are making payments on what you owe and you have a plan worked out with them, your personal belongings should be safe. Once you find a good tax attorney they can give you more detailed advice.
by SmartA$$- 1 year ago
Yes, the IRS will take anything, couch, T.V, bed, anything that has any type of value. Not to scare you or anything but they can pretty much take everything.
by Randi- 1 year ago
of course they can; the IRS auctions off cards, boats, TVs etc daily. ---why did not your dad buy insurance to protect himself against fraud and embezzlement? HOW long did it take the thief to steal the money? I can see 1 yr depression but not 5. NOW, keep this in mind; if you hire a good CPA, your dad's losses are all TAX deductible!!! Thus, he can file for and get filing extensions and then, get a huge refund now or after he starts getting profitable again. That is one of the unique aspects of USA business losses; they are deductible. Available to guide further
by kemperk- 1 year ago
The tax attorney will be able to fully explain his potential liability. Such as the IRS look back where they can come after assets that where transferred to avoid IRS garnishment, also you have potential liability being knowingly involved
by goz1111- 1 year ago