Buy a home, car, helicopter, NFL team or whatever for one measly dollar. Ah, we must be talking about IRS property auction hype.
The Basics of IRS Property Auctions
You may have seen commercials or advertisements on the web about the steals you can get at IRS property auctions. Whether you can actually get such deals is questionable, but there is no doubt the IRS does hold auctions. The purpose of the auctions is to sell off property of a taxpayer that owes the IRS money. Here are the basics of the auction process.
Perhaps the most interesting thing about IRS auctions is there is no set procedure. With some auctions, you must appear in person to bid. With others, you can mail in a bid. Still others require you to submit a sealed bid. So, how do you know which is which? You need to get a copy of the official notice of the auction. It lays out all the specifics and is binding on the property sale.
The second basic thing to know about IRS property auctions is the payment method. Ironically, the IRS is really into cash. If you intend to bid on a piece of property, you must be prepared to pay in cash, with a cashier’s check or certified bank check. You cannot finance the transaction, pay by personal check or even use a credit card. Again, make sure to review the official notice of auction for payment requirements.
This cash or equivalent attitude stymies many bidders. How can you get a cashier’s check before the auction if you do not know what the winning bid will be? To resolve this, many people will get a check for their minimum bid and then bring cash on top of it to make up the difference between the check and winning bid. Not the smoothest approach, but the IRS accepts this approach.
Finally, most people wish to know if they can get on the IRS mailing list for property auctions. In short, the answer is no. There is no list. While this might make you groan, you should realize it also constitutes the reason you can sometimes get a major deal. If everyone was able to access a mailing list, the auctions would be packed and great deals would not exist!
Richard A. Chapo is with Business Tax Recovery - providing information on taxes.
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