For 99.9999% of people who are behind on their taxes or filing taxes, you will not got to jail. And they will not seize your home and kick you out. These extreme penalties are for those who owe a lot of money and are breaking the law and committing tax fraud. But for most people who did not file their taxes or owe money to the IRS, contacting the IRS and getting a resolution will fix all of it. You may have to pay all of it back if you’re not in financial hardship but the best thing that you can do is to communicate with them and work something out.

Now let’s talk about what they can do. The IRS (along with the state) can levy your bank account and in some cases will take all the money that is in there if it’s less than the balance you owe.

The IRS (and state) can garnish your wages. This means they will take a portion of your paycheck until your balance is paid in full.

The IRS can also put a lien on your assets such as a home. Now this doesn’t mean that you have to sell the house. It just means that the government has a legal claim against your property when you neglect or fail to pay your tax debt. If you do decide to sell it, they will get paid first before anyone else. Keep in mind they are not forcing you to sell.

The IRS can also take your passport. The threshold for 2024 is $62,000. If you owe more than this amount, there is a good chance that your passport may be revoked or denied.

Once you talk to us, you will be reassured that a resolution is right around the corner and soon, very soon, you will have a handle on your taxes and will be on the road to the best resolution possible.