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Purchasing Through an IRS Auction

Purchasing Through an IRS Auction

The Internal Revenue Service (IRS) is the government agency responsible for collecting taxes and enforcing tax laws in the United States. One of the ways the IRS recovers unpaid taxes is by conducting auctions of seized assets, such as real estate, vehicles, jewelry, and other valuables. Participating in an IRS auction can be a great way to find good deals on items, but it is important to understand the process and follow the rules.

What is an IRS Auction?

An IRS auction is a public sale of property that has been seized by the IRS for non-payment of taxes. The auction process is designed to recover unpaid taxes and penalties, and the proceeds from the auction are used to pay off the delinquent taxes. The IRS conducts auctions both online and in person, and the items for sale can range from expensive vehicles and luxury homes to smaller items like jewelry and electronics.

Why Does the IRS Conduct Auctions?

The main reason the IRS conducts auctions is to recover unpaid taxes. When taxpayers fail to pay their taxes, the IRS has the authority to seize their property to satisfy the debt. The property is then sold at auction to recover the amount owed. In some cases, the IRS may also seize property from taxpayers who are suspected of tax evasion or other illegal activities.

How Does the IRS Auction Process Work?

The IRS auction process typically starts with the seizure of property by the agency. Once the property has been seized, the IRS will usually provide the taxpayer with notice and an opportunity to challenge the seizure. If the taxpayer does not contest the seizure or is unsuccessful in their challenge, the IRS will then prepare the property for auction.

The auction process can vary depending on the type of property being sold and the location of the auction. Some auctions are conducted online, while others take place in person at a specific location. Before the auction, potential buyers can view the items for sale and may be able to inspect the property to assess its value.

During the auction, bids are placed on the items, and the highest bidder wins the item. The proceeds from the sale are used to pay off the delinquent taxes owed by the taxpayer.

Tips for Purchasing Through an IRS Auction

If you are interested in purchasing items through an IRS auction, there are some important things you should know.

Research the Items for Sale

Before the auction, research the items that will be up for bid. This can help you determine the fair market value of the property and ensure that you are not overpaying for an item. You can often find information about the items for sale on the IRS website or by contacting the agency directly.

Set a Budget

Set a budget for yourself before the auction and stick to it. It can be easy to get caught up in the excitement of the auction and overspend on an item, but you do not want to end up paying more than the item is worth.

Understand the Auction Rules

Make sure you understand the rules of the auction before you start bidding. For example, some auctions may require a deposit or payment in full at the time of sale, while others may allow you to make payment later. It is also important to understand the terms and conditions of the sale, such as whether there are any warranties or guarantees.

Inspect the Property

If possible, inspect the property before the auction to assess its value and condition. This can help you avoid purchasing an item that is in poor condition or is worth less than you originally thought.

Conclusion

Purchasing through an IRS auction can be a great opportunity to find good deals on valuable items. However, it is important to understand the auction process and follow the rules to ensure a successful purchase. By researching the items for sale, setting a budget, understanding the auction rules, and inspecting the property, you can increase your chances of finding and acquiring the item you want at a fair price.


IRS auctions take place more often than most realize. Under the governmental authority of the Internal Revenue Service, they have the right to seize certain items of individuals who have failed to make their payments on the IRS taxes.

All items that the IRS acquires are done so without any payment. These items are then sold at IRS auctions to raise the money that the original owner could not afford to pay to the IRS from their taxes.

IRS auctions are now normally done through the internet. A person can view locations and items that are up for auction and bid on them. Generally the most popular items in IRS auctions are houses, automobiles, commercial property, stocks, liquor licenses, medical equipment, and real estate.

The government does not provide any form of financing to the bidders of an IRS auction.  There is no guaranty or warranty on any item purchased through an IRS auction, and everything being sold is sold as is.

Anything purchased through IRS auctions must be paid for in the form of cash, certified check, cashier’s check or a treasurer’s check. In most cases, IRS auctions will accept mail in bids as long as the person submitting the bid has obtained a copy of the Notice of Sale and is aware and agrees with the instructions and limitations.

After a bid I made, and a person wins the IRS auctions they generally have up to 180 days after approval to redeem the purchase. Unlike other auctions, the IRS auctions do not charge a buy a premium at the sale, nor do they add one.