How does the IRS determine the “minimum bid price,” or what the IRS will sell seized property for at public auction or private bid?
The IRS starts with an estimated fair market value. This is then reduced by 25 percent. The minimum bid price is 80 percent of that amount. Of course, the IRS must pay all prior encumbrances and expenses of the sale from the sale proceeds received. Taxpayers can object to the minimum price bid on their property and request the IR obtain a new professional appraisal.
