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Hello and thank you for using Just Answer,If you are in a payment plan (installment agreement) the IRS does not pursue enforced collection procedures. As long as you do not default on your arrangement the IRS does not levy payments.
They will take refunds though while an installment agreement is active and they will leave liens in place (if any have been processed).
That's good news.
I have one more question. I am sure the settlement itself is taxable? If I agreed on annuity payments is that also taxable?
It would depend on what the settlement would be for.
If it is to pay an amount that would have been taxable to you anyway (wages) then yes
If it is for a physical injury then no, except for any part that was used as a medical deduction in a previous year.
Loss of revenue to my business.
OK, that is understandable.
Well, thanks very much for your time. I will be sure to give you a good rating.
You are most welcome