A Bank Account freeze always happens at the most inconvient time.
, especially when you're checking out at the grocery store, your $150 worth of groceries already bagged and a long line behind you.
Or worse, when you're trying to pay your utility bills and the funds just aren't there.
If you owe the IRS, you need to pay attention to the warning signs to prevent a Bank Levy from happening to you.Expect It If You Owe:
If you know you owe the IRS and have not contacted the IRS to fix your issue, just know a Bank Levy is never out of the question.
A freeze on your bank account may be the first sign that you owe, because sometimes IRS Notices won't reach you and the IRS will use a freeze on your account to get your attention instead.It Goes From a Freeze to Seizure:
First, the bank freezes all the funds available in your account on the day that the levy is issued and sets them aside. After 21 days, the bank sends those funds plus any interest that may have accrued to the IRS. If you do not contact the IRS before the 21-Day Deadline
and make a strong case about needing that money, your funds are gone for good. Look Out for the "Final Notice":
Any notice from the IRS is reason for you to stand at attention and solve your issue. The "Final Notice of Intent to Levy" notice is particularly noteworthy. After that, your paycheck and bank account are fair game for the IRS.Find a Solution for Your Tax Debt:
The final lesson here is that you cannot dodge the IRS. If you owe and have not been levied, the IRS will
find you and levy you eventually.
There's no way to escape your tax debt, so work with a professional to find a solution instead of running away.