Yes, if you’re approved for an OIC, installment agreement, or hardship status (Currently Not Collectible), most collection actions like wage garnishments or bank levies pause or stop. However, the key word is “approved.” Simply applying doesn’t automatically stop collection actions. You need to submit a complete application with all required documentation. Once the IRS accepts your application for processing, they typically halt aggressive collection efforts. Missing a payment can lead to default, causing penalties, reinstated collection actions, or canceled agreements. Direct debit is recommended to avoid missed payments. This is why it’s crucial to set up a payment plan you can actually maintain.