The IRS holds auctions across the country to sell seized property. This property can be real estate, boats, vehicles, or personal assets. Bidders can view the items in person or mail in their bids. If the bidder meets a threshold, they can purchase the property. Generally, auction items are sold in their current condition.
The IRS has many methods to collect taxes from individuals. Often, the IRS starts by levying taxpayer assets, including bank accounts. This type of action usually results in a freeze on the bank account and requires a taxpayer to make immediate payments. Alternatively, the IRS can seize real estate or personal assets to pay back past due taxes. Once the taxpayer does not pay, the IRS can liquidate the asset for cash by employing an auctioneer.
While other types of advertisements may gloss over or leave out details that are important to the public, a legal ad for IRS Auctions is written to keep the public informed. Because of this, the wording in the ad must be clear and complete. It should also not use abbreviations.
Auctions are a great way to purchase property. In some cases, the highest bidder wins the property. The downside of this approach is that the taxpayer must pay the tax on the property within 180 days after the auction sale. In some cases, this means that the taxpayer could end up losing their investment or capital expenditure.