The short answer is yes. The IRS is a super creditor, and can reach pretty much any asset including your home and retirement accounts. You should make sure that the financial statement that you file with your offer in compromise clearly discloses the personal injury claim. Should the IRS accept your offer in compromise before you receive your settlement funds, they will not come back after the settlement proceeds. They will look to you to fulfill the terms of your offer in compromise. It is very important to disclose the personal injury claim along with your offer in compromise.
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