Can the IRS take your inheritance money for a student loan

Quite possibly, at some point - the same way a creditor (the IRS, or student loan lender/collector) can go after any money you have. If you are in default on student loans or just need to pay them, that is a good use of money that falls into your hands (even though it is from an unfortunate event). What else do you plan on using it for?

The IRS can lien any property you own, so if you take money from an inheritance and put it in a bank account or buy something with it, the IRS can take the property or the money. The same is true for student loans if the loan company converts the loan to secured status by suing you and receiving a Judgment. While inheritances are not taxable income to the person receiving it, your father's estate may have to pay taxes on it, so you should get some specific legal advice about that. Also, gains when you sell property purchased with inherited money can be taxable as well. Finally, as you posted this under bankruptcy, a bankruptcy trustee could take inherited money or property if you submit yourself to a bankruptcy case. Therefore, you need to see an attorney who handles tax, bankruptcy, and estate planning issues to get some specific advice on where you stand and how to proceed before any irreversible mistakes are made.

Sure can, if they take the right steps. If you have a valid debt that is owed, shouldn't you pay it of you have the means to do so?