Yes, the IRS can seize your property, but, certain guidelines and restrictions are more stringent today than when first implemented. It used to be quite a common practice for the IRS to seize your property and sell it, without so much as a court order. This was especially commonplace for businesses that were delinquent with payroll taxes. If you have proven to be a delinquent taxpayer, items such as cars, home furnishings and entire homes, business equipment, and machinery can be seized by representatives of the IRS. They will sell your assets and property to pay the amount of taxes you owe and have not paid.