We owe about 40k in IRS back taxes from 2009-2013 - with interest comes to about $50k. (FYI we also owe state back taxes but have a pmy arrangement with them - so am focusing on the IRS).

My husband has a serious medical condition and am going to need to quit my job to care for him and likely move back east in about a month as he has family there at least and we would not be able to live on the west coast anymore as the cost of living is too high and we can't afford it.

I hired a tax relief company about a year ago -- they have been taking forever. They are trying to set-up payment arrangements with the IRS -- just gave them 433a - but don't know when they'll get to the point to solidify it -- at their rate it could be 8 months.

When I quit I am eligible to take a lump sum distribution from my pension plan that my company paid into. Amounts to about $20k. If I opt to take the lump sum, it would be payable in May 1, or I may be able to stretch it to June 1.

I know when the lump sum is actually paid out/check cut, the IRS gets notified.

Questions-
- We are going to need the money to live on when we move back east as I will not be able to work due to care for my husband. When I get it deposited to our bank acct, I will need to take the majority out right away to pay for rent/medical bills/ect. This will basically be the money we will be living on for at least 1+ years and can't risk a bank account levy. If I receive the lump sum and then take it out of the bank account right away with the intent to live on it, is that considered tax evasion? I would still pursue payment options with the IRS -- not trying to get out of our obligation -- but we will need to have money to live on, and we can still pursue payment arrangements after the May 1 disbursement. Don't want to get tagged for tax evasion though.

Also, Are there any other options?

Pls don't ask me to ask the tax group we hired -- they are useless. Should have known better than to hire a place off a radio station, even though I did do some homework.