Homestead and IRS

A prospective client called and asked whether the Florida homestead protection extends to IRS debts where the IRS debt pertains to one of the two spouses who own the homestead.While Florida’s homestead is a broad and strong asset protection shield, it does not offer full protection against IRS taxes. The IRS can put a lien on homestead property to collect taxes. While the IRS cannot force a sale of the residence to collect taxes, the tax lien would remain a recorded encumbrance, and whenever the house is sold, the taxes, plus accrued interest and penalties would have to be paid before the homeowner received any sales proceeds.

Page last updated on May 22, 2020

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