Is the IRS Going to Take the Car I Need to Go to Work?
The answer to this question would depend on if this is your only car or is it a collector car and you have another. If this is your only car you need to go to work, the IRS is prevented from taking it under Internal Revenue Code 6343(a). This section of the code prevents an IRS levy if it creates an economic hardship. Seizing a car that will prevent you from going to work creates an economic hardship.
Under 26 U.S. Code § 6331 The IRS is prevented from seizing unless the seizure and sale will produce sufficient net proceeds from the sale to provide funds to apply to the taxpayer’s unpaid tax liabilities.
In 2018, the IRS made 275 seizures of real and personal property. Most of those seizures where of real estate. With greater than 14 million taxpayers with delinquent accounts in 2018, you can see the IRS’ seizure of hard assets are relatively rare. The IRS is not in the vehicle repo business, nor do they want to prevent you from getting to work.
Even if this is not your only vehicle, the seizure of a vehicle requires the action of a Revenue Officer and is typically only considered under cases of extreme non-cooperation. Good communication with a Revenue Officer lowers any risk of the IRS seizing your vehicle.
It is quite unlikely the IRS wants your car. The real concern is your wages, bank accounts – liquid assets with equity.