Q: Can the IRS seize an auto insurance settlement I receive to payoff the current installment arangement I'm in with them?
A:
Most likely yes, if they become aware of the same. The IRS has some of the strongest creditor rights of all entities with the Department of Revenue being pretty equal to the IRS.
If you have a payment agreement and you are current with the same, in theory the IRS should not need to mess with your settlement so long as you remain current.
Good luck, hope this helps.
A: If you are in a full pay installment agreement with the IRS, and have not defaulted, they should not seize your insurance settlement. Once you are in an installment agreement the IRS ends collection activity against you with the exception of taking your tax refund every year. If for some reason the IRS feels that collection of your debt is in jeopardy, they may be able to seize the payment, but it is unlikely if you have an installment agreement in good standing.
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