How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Stephen G. Your Own Question
Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 7147
Experience:  Extensive Experience with Tax, Financial & Estate Issues
Type Your Tax Question Here...
Stephen G. is online now
A new question is answered every 9 seconds

If a person makes an income but does not report it and is then

This answer was rated:

If a person makes an income but does not report it and is then found guilty of tax evasion at some point and a private lender has a note and deed of trust on their home in the first position does the IRS seize home and the private lender loose his/her claim on the home?

Stephen E. Grizey :

No. As if the IRS seized the home & it went to auction, it all would be subject to the prior recorded mortgage.

Stephen E. Grizey :

Please remember to click on the green "ACCEPT", or the "smiley face" as appropriate; that is the only way we get credit for our work, even if you are on a subscription plan. Feedback, if you have time and bonuses, where you think they are warranted, are always most appreciated. Before or after you ACCEPT, I will be happy to answer any additional follow-up questions you may have. Thanks again for using our service.

If you'd like to contact me again, in the future, just ask for "Steve G" at the beginning of your question.

Stephen G. and 5 other Tax Specialists are ready to help you

JustAnswer is designed for an interaction between the expert & the customer; you asked a simple question which could have been answered with a simple yes or no. I answered "No" & also explained why. If you wanted further clarification all you had to do was ask -- and that's all you still have to do -- as I said, I'll be happy to answer any follow-up questions that you may have, but you need to ask them here, not in "feedback", we don't get to read the feedback comments until much later in the process.

It doesn't matter what state you are in, all the IRS can attach is a taxpayer's equity in whatever property he/she has.

If, on the other hand, the mortgage was created fraudulently to attempt to evade taxes, and that could be proved in a court of law, then it would be possible for the court to void the mortgage & then the entire remaining equity in the property would be subject to the IRS collection process.

This of course would not void any legitimate mortgages supporting a note or other obligation used to acquire or improve the property or to provide security for any other legitimate obligation of the taxpayer.

If you have any other questions about your "hypothetical" situation, please ask.