If the proceeds of the sale are less than the total of your tax bill and the expenses of the levy and sale, you will still have to pay the unpaid tax. The IRS will simply proceed to sell your property until they satisfy your tax debt in full. If you are one of the many who think that their home is protected from the IRS by their state homestead laws, then you are in for a rude surprise. The IRS is one creditor that can ignore your state homestead laws and seize your home. As soon as you receive a notice of levy you should call me immediately.
Time is critical.
Often I am able to make arrangements with the IRS to avoid seizures. If you are one of these unfortunate taxpayers who are drowning in penalties, there is hope. You can request that these penalties be abated. You have good reason for an abatement if your tax problems were at least partly due to adverse circumstances, which you had little or no control over. Of course, circumstances and reasons vary from one person to another.