[lauryd]

I just received a workers' comp settlement check. However, I owe back taxes and I'm on a payment plan. Can the bank notify the IRS to see if I owe back taxes and can the IRS take my check.

[AtlantaTaxExpert]

Probably, unless you can proof to the IRS that you need that workmen's compensation settle to live on.

[ScottGem]

First, please don't piggyback your question on another thread. Your question has been moved to it's own thread to avoid confusion.

The bank will not notify the IRS unless there is a standing attachment order. But if there is or the IRS becomes aware of it, they can attach the account.

[Fr_Chuck]

The money you receive, if it is owed and to be paid to to debts it is for, may be exempt, the other money is income basically often for loss of work and other costs. And that is open (and actually should be paid) if they have a garnishment on you.

Also if you don't report it, and work it out with them, this could even call any deal off you have with them because of what they will deem as fraud on your part, getting incomes not reported.