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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16580
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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If a person has a federal tax lien and has an installment agreement

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If a person has a federal tax lien and has an installment agreement with IRS and is paying on time, can they take any inheritance money that this individual comes to receive. For example, there is a tax lien for amount owed of 30,000.00. An individual receives an inheritance for that amount. Will the IRS take that money. How would they find out about it?

MyVirtualCPA : Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.
MyVirtualCPA : If you have an installment agreement and are making timely payments the IRS will not try to take your inheritance
MyVirtualCPA : The IRS would not know about this inheritance as it is not reported to them
Customer: So they will not take money from an individual once they receive the money. I have a small inheritance from my mother and that would come in the next few weeeks. And yes I have paid on time and have an installment agreement
MyVirtualCPA : No, as long as you are keeping your installment arrangement current
Customer: thank you so much - what a relief
MyVirtualCPA : Now, if you stop making payments they can take money from your bank account
Customer: oh no - I will be good - what a relief - thank you
Customer: that is all I needed - I appreciate your response.
MyVirtualCPA : You're welcome
MyVirtualCPA : Please rate my response as excellent so that I may receive credit for assisting you today
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