I live in the United States and I owe taxes to the state, which I'm not able to pay. I don't have a permanent residence and live with family/friends.
One of my family members received a letter stating their property will be seized. They don't have any financial affiliation with me. Is it possible for the state to seize someone's property if I lived there — even though they have no financial affiliation with me?
The government cannot seize property because a person residing at that property has a tax debt: the debtor has to have a legal interest in the property, which you say you don't have. The government can seize property under the practice of civil forfeiture, which is a legal dispute between law enforcement and property – the simplest way to put it is that the property itself has "done wrong" (is involved in illegal activity). That's not what tax debt is.
It is possible for the state to seize property in error, so just because the state makes a mistake somehow does not mean that the state cannot file the paperwork and seize the property if the owners ignore the summons.
