Thursday, August 25, 2011

Why Would the IRS Freeze Your Bank Account Without a Warning?

I received the subject line of this post verbatim as a question the other day.
We'll call the sender Susan.

It does seem like the IRS will freeze your bank account suddenly and without warning.

Don't take this hyper-literally. Let me explain the process a little more. Here's what I sent back to Susan:


When a Taxpayer owes the IRS they are sent numerous notices requesting timely payment of the past due tax bill. When the IRS’s “Final Notice of Intent to Levy” goes ignored, the IRS has no choice but to “wake up” the taxpayer and get them to repay their debt by force by freezing the funds in their bank account.

The IRS does not depend on this method for collections. After all, for most people the IRS only needs to freeze and seize funds from their bank account once- after that they’ll catch-on and pay the IRS or stop putting funds in their bank account.

The IRS doesn’t automatically start seizing wages (which they are also allowed to do) or funds from the bank account with reckless abandonment. Taxpayers receive ample warning first. The IRS would prefer the amount was simply paid instead of reaching into bank accounts and paychecks.

I hope that answers your question. Were you wondering why the IRS would do this, or what they would have the authority to do this? Are you facing a bank levy issue of your own?

I hope this answers your questions, too. Remember, you still have a chance to get your funds back when your bank account is frozen by the IRS. Work before the 21 day deadline expires and hire a professional to help you succeed at getting your money back!


Anonymous said...

Is there any way to call the bank and ask them if you are going to be levied?

The IRS Hitman said...

The bank will not know it advance either. Nice try, but your only option is to work to resolve your tax debt instead of looking for ways to "predict" the levy.

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