Can the IRS take my House or Car (Link)
The IRS prefers to use other methods, such as wage garnishments, offers in compromise, or installment plans. But, if you refuse to pay or cooperate, the IRS is able to take your possessions and auction them off.
There is a lot of room to negotiate when dealing with IRS issues, and the IRS will not normally act against you if there is a good faith disagreement or if you are suffering a financial hardship.
by Dennis N. Brager