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.
Hiring an IRS tax attorney will eventually make good sense for you. The most important thing you should do is try to avoid the common mistake by being less knowledgeable. So, you must feel free to speak with a few and find the one with the most reasonable charge and competent services. Making sure that you hire only the best IRS tax attorney will help you in reducing your debts as well. In addition, if you need help for your income tax; you can simply hire an income tax attorney that is able to advice you...