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    siderjohn2007's Avatar
    siderjohn2007 Posts: 1, Reputation: 1
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    #1

    Mar 17, 2010, 07:35 PM
    Can the IRS take your workers comp. insurance sttlement
    I have a workers comp settlement coming to me but I owe the IRS back taxes can the take that settlement?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #2

    Apr 30, 2010, 01:55 PM
    Yes, they can, and yes, they WILL!
    jjay59's Avatar
    jjay59 Posts: 6, Reputation: 1
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    #3

    Dec 16, 2011, 07:57 PM
    What if a repayment plan is in place?
    outta_town's Avatar
    outta_town Posts: 1, Reputation: 1
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    #4

    May 3, 2012, 07:28 AM
    I am out on disability and owe back taxes to the IRS. I had a payment plan in place but being that I am out of work they have not been able to garnish a paycheck. Now they have taken every dime of my workers comp payment. Is that legal? Don't they have to leave you with something to survive on?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #5

    May 3, 2012, 07:35 AM
    Yes, it is legal. You owe them back taxes, and that settlement is considered to be a windfall that is NOT essential to your everyday expenses.

    You can appeal to the Tax Advocate to see if they can get some of the settlement, but I doubt it will do any good.

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