Final answer:
Aircraft ownership and federal income tax liabilities can result in the IRS filing a tax lien, potentially leading to the seizure and sale of the aircraft to pay off the tax debt. This is part of the enforcement power of the IRS to manage 'free riding' and ensure compliance with tax laws.
Step-by-step explanation:
If an aircraft owner owes federal income tax and the IRS files a tax lien against the owner, the aircraft may indeed be seized and sold to satisfy the tax debt. This is part of the IRS's enforcement powers to ensure compliance with tax obligations. When taxpayers fail to pay their due taxes, the IRS can file a Notice of Federal Tax Lien, which alerts creditors that the government has a legal right to the taxpayer's property. If the debt remains unpaid, the IRS can then proceed to levy the property, which includes the power to seize and sell assets such as an aircraft. The proceeds from such a sale would then be used to pay off the outstanding taxes.
The phenomenon of 'free riding' references individuals who avoid paying taxes, which results in significant loss of revenue for the government. To combat this, the U.S. government must allocate resources for more effective monitoring and enforcement of tax laws. Without these measures, government programs and services funded by tax revenues would be adversely impacted.