The Internal Revenue Service (IRS) possesses the authority to levy against assets held under joint ownership to satisfy a tax debt. This power typically targets the delinquent taxpayer’s share of the property. For example, if one spouse owes back taxes, the IRS may place a lien on jointly held real estate, though typically only to the extent of the debtor spouse’s ownership interest. Understanding the intricacies of these situations requires a thorough knowledge of tax law and property ownership structures.
This ability to collect against jointly held assets is a crucial tool for ensuring tax compliance. It prevents individuals from shielding assets from tax liabilities simply by placing them under joint ownership. Historically, the ability to levy against various asset types has evolved alongside increasing complexities in tax law and property ownership structures. This mechanism is balanced by legal protections for the non-liable owner to prevent undue hardship.
