What Happens if the IRS Places a Federal Tax Lien on a Car I Have Not Finished Paying For?
Unless you leased your vehicle, and therefore do not own it, the IRS can place a federal tax lien on your car. Even if you owe a sizeable number of payments on your car loan, the IRS will simply become a second lien holder in your vehicle's files. It is important to realize that should you have an automobile collision, the IRS will attempt to gain any monies left over after your car payments are settled.