The IRS can take your home. They can also take your Social Security income. The reason that this sometimes happens is that taxpayers refuse to enter into any kind of payment agreement or they fail to file their returns. The IRS can take approximately 15% of your monthly income, Social Security income and they will apply it to your outstanding tax debt. It is rare that the IRS can take your home, however that does happen in certain circumstances involving tax fraud or tax evasion.