Will the IRS Take My Car? So the IRS we had a long history of doing really nasty things to people in the early to mid nineties and one of the things that they would do to people if they would call them in for meetings and then they would take their cars while they were in the meetings they would tow and impound so what happened is Congress responded and has the IRS reform and restructuring which doesn't say that. The IRS can't take your car but generally speaking there are protocols in prank place and. The IRS is just going to come by and sweep your car off the street so yes the IRS does view your car as a physical asset and if there's value there they're gonna want you to borrow against the car or they're gonna want you to sell that asset but it's not like they're wandering around in tow trucks and they're just gonna lift the car off offer out of your driveway in addition a lot of people their car is a necessary expense for them or a necessary asset because it drives them to work it allows them to produce income so generally speaking IRS agents look at cars as reasonable and ordinary living expenses because they view it as a part of essential transportation, so yes, the IRS can technically take your car but no they're probably not.