How to Unfreeze a Bank Account that the IRS Has Frozen
Imagine waking up to discover your bank account has been frozen by the Internal Revenue Service. This could have a catastrophic effect on all aspects of life, emphasizing the importance of understanding the IRS’s actions and how to address them.
Why the IRS Freezes Accounts
The IRS has the legal authority to freeze a bank account or issue a bank levy when one fails to pay tax debts. The IRS notifies the bank, demanding them to hold the debtor’s funds for 21 days, a period during which the debtor can negotiate with the IRS.
When the IRS freezes a bank account, it follows a legally-mandated procedure. The IRS sends multiple notices before resorting to a bank levy, giving the taxpayer ample opportunity to address the issue. Georgia debt collection laws also play a role, as they establish the protocols for such actions in the state. The consequences of a bank account freeze are severe, affecting one’s financial stability and creditworthiness.
To unfreeze the bank account, communication with the IRS is the first crucial step. The IRS offers various options to resolve the tax debt including the following…
It is a payment plan where you agree to make regular payments towards your tax debt over time. The IRS offers several types of installment agreements.
- Guaranteed Installment Agreements
- Streamlined Installment Agreements
- Partial Payment Installment Agreements
Offers in Compromise
It is an agreement between a taxpayer and the IRS to settle the taxpayer’s debt for less than the full amount owed. The IRS will consider an OIC when it’s unlikely that the tax liability can be collected in full within the statutory period for collection or when a collection of the full liability would cause the taxpayer economic hardship.
Bank Levy Release
Filing for a bank levy release is another legal action that can help unfreeze your account. This procedure requires in-depth knowledge of tax laws, again making the services of an IRS collections attorney invaluable. The timeline for a bank levy release can vary, but with the right legal support, you can expedite the process and achieve a favorable outcome.
Engaging an experienced professional, such as an IRS collections attorney, can make a significant difference. The Law Office of Max Benkel, PC, is equipped to handle such cases, helping clients navigate complex tax laws and achieve optimal results. You don’t have to face the IRS alone. Reach out to us, safeguard your financial future, and take back control. Rest assured, with the right help, you can unfreeze your account and secure your financial stability.