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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.

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โˆ™ 2008-01-17 17:28:59
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Q: Will the IRS take your taxes if your car was repossessed?
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Related questions

Can the IRS tke your tax refund if your car is repossessed?


Did your car get repossessed by the IRS?

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.

If you file Chapter 13 and change your mind and your car is repossessed will the IRS take your taxes for the car?

NAKEI, I dont KNOW the answer but I dont see why they would. How would repoing your car give you any income for the IRS to tax?? Is a collector/repo person threatening you?No, the IRS will not take your taxes, on a repossessed vehicle or other property. However, the lender does have various legal options to get money owed them by an individual. This includes the ability to file a claim with the courts to garnish your wages and even your tax refunds.You should check the laws in your state regarding "garnishment" because not all state allow for wage garnishment and that may also affect where your tax refunds can be garnished.

Do they take a repossessed car to a local lot?

Typically, no.

Can they take your personal property if a used car is repossessed?


Ways to cause your car to be repossessed?

The only way you can have your car repossessed would be to not make any payments. If you have taken out a loan and have not made payments, they will take your car away.

Do you have to notify the DMV if your car was repossessed?

NONE, the lender will take care of it

What happens if you get your car repossessed?

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

Can a car be repossessed from your employers private driveway .?

Yes. If the person repossessing the car finds it then they can take it!

How do you get your car repossessed?

If you don't pay your car payments, people go to your house and take it away.

How can you locate your repossessed car?

Your car was probably repossessed by the lender who owns the car until you pay for it. Call your lender and they will be able to tell you how to locate your repossessed car.

Can the IRS arrest you?

If you have received a phone call, claiming to be from the Internal Revenue Service, telling you that you owe taxes, threatening you with arrest if you do not pay immediately- it is a scam. First, the IRS does not call you- you get a registered letter. Second, you are not arrested for owing money- you CAN be hauled into court for evading taxes. If you owe the IRS money, and they want it, they can take it without your permission. They have the power to take your paycheck, your bank account, your car and your house.

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