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Will the IRS take your taxes if your car was repossessed?

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βˆ™ 2008-01-17 17:28:59

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No, but if the bank writes off any portion of the loan as a cancelled debt and reports it you on Form 1099-C, then you must include that on your tax return as income. Cancelled debt is taxed as income under the Internal Revenue Code.

2008-01-17 17:28:59
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Can the IRS tke your tax refund if your car is repossessed?

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The IRS can reposses everything-- Even your clothes!!! Technically yes, but it very rarely happens. An IRS lien technically attaches to EVERYTHING you own (even your toothbrush), but that doesn't mean the IRS is going to come take your toothbrush.


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Typically, no.


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if i get my car repossessed, can they put a llien on the house?


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