Florida Homestead and IRS

I just finished responding to following email about Florida homestead protection and IRS debts:

“My friend informed me that in Florida a qualified homestead was exempt from legal judgments and that the law was very broad. He stated that a principal residence was protected from forced liquidations. He went on to state that the law was even good against IRS debts. I found this to be very hard to believe.”

Don’t believe it. If you owe income or payroll taxes the IRS tax lien encumbers all your property including a Florida homestead. The Florida constitution prevents the IRS from foreclosing the lien and forcing you to sell your primary residence. When you sell the house, or when the owner(s) dies, the IRS will take sale proceeds to pay the tax lien. Other exceptions to homestead protection are voluntary liens, such as mortgages, and mechanics liens for work done on or goods supplied to your principle residence.

Last updated on May 22, 2020