i owe back taxes approx. 40k before interist
The short answer is yes.
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Yes they can assuming that they have filed a Notice of Federal Tax Lien and they have sent a Final Notice of Intent to Levy to your last known address. Typically, in such a situation, they will only demand something like half of the retirement account (assuming you are not of retirement age) because such a seizure will create additional taxes and early withdrawal penalties.
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