The IRS, a part of the U.S. The Department of Treasury, which keeps up with fellow taxpayers’ tax laws and responsibilities, may have frozen your account for the first time. And if so, what to do? How do you resolve the ‘IRS froze my account’ issue and regain financial control?
‘IRS froze my account’ might be an action taken against you for various reasons, which include suspicious activities, tax levies, violations of rules and regulations, or unfulfilled tax debts. Of course, freezing one’s account is so infuriating because it somehow obstructs our daily financial dealings.
The IRS will only freeze your account with prior notice. It will give you ample time to operate effectively and untangle your account from their clutches. Also, it isn’t your entire account that is frozen; it’s the money present during the levy implications. So, any money deposited after freezing is still accessible.
The IRS will place a 21-day freeze on your account and funds called the waiting period. The waiting period provides you with sufficient time to gather enough resources to fix the issue, like arranging payments to dispute the debts and levies. If it still needs to be fixed after 21 days, the bank can provide them from your account.
The IRS Froze My Account: What Are The Steps To Resolve?
Recovering your account will be tedious if you don’t have a good grip on the laws that follow this matter. Following the given steps will help you with the basics needed to relieve your frozen account.
- Give a response to the prior notice.
The IRS will send you a notice 30 days before the freeze happens. Responding to this and contacting the IRS during this period will be the safest and easiest way to resolve the issue before it gets tangled up. The notice will list the problems found against your account. Work on it and figure it out. Ignoring this will create extra work as there will be only a 21-day window to resolve the issues.
- Call for professional help.
Seeking the help of tax experts with professional knowledge of tax laws, rules and regulations, and taxpayers’ rights will be so effective as a comparative majority won’t have deep insight into the matter. The availability of tax lawyers is plentiful. Also, many other helping hands, like Tax Hardship Center, LLC, will ease your frozen account with a professional outlook.
- Clear your pending penalties.
If you have tax levies and tax debts with penalties, clearing them is necessary. This will avoid further complications and burdensome fines. As we all know, these are caused by late payments and unnoticed deadlines. Try to be up-to-date with timeframes and tax payments to avoid similar situations.
- Try for ‘Offer in Compromise’.
An Offer in Compromise (OIC), Form 656, is an agreement between you and the IRS allowing you to settle your tax liabilities for less than you owe. This is useful for people facing financial hardships while making up for the pending payments. The IRS will decide to approve the offer only after considering your income details, payment ability, expenses, and assets. Also, don’t default on your OIC. Your agreement can be cancelled without any second thoughts.
- Go for a payment plan.
Agreeing to a payment plan with the IRS provides an additional timeframe for fulfilling your tax liabilities. The payment plan can be short-term or long-term (Installment Agreement or IA). A payment plan helps you with extended deadlines and temporarily suspended levies. You can apply online through the Online Payment Agreement Tool. It can also be granted by submitting the Installment Agreement Request (Form 9465).
- Make sure you haven’t violated any rules.
Ensure you haven’t violated any rules that form the structural basics of bank secret codes. It is so important to follow all the privacy rules and mandatory regulations set by the IRS and banks.
- Avoid being involved in suspicious activities.
Making the IRS and bank suspect you of any doubtfully harmful activities will result in taking action against your account. So always try to stay in the safe zone while going along with activities with green flags. If you weren’t involved in any such activities but still found your account frozen, please contact the IRS with the necessary details.
If you’re not up to unfreezing your account, the consequences won’t be very entertaining. As already mentioned, the entire account won’t be frozen; it’s just the amount present in it at the time of freezing. Whatever you deposit afterward will be completely accessible. But if the frozen account isn’t revived after 21 days, you will likely face problems related to your accounts.
Final Overview
If you do not clear the problems, the IRS will take the required amount from your account to clear the levies and penalties. But if there isn’t enough in your account, the IRS will choose other accessibilities like your wages, assets, etc. So it will be wise of you to take the necessary steps to avoid complications with unprecedented after-effects.
To stay safe from frozen accounts and stay away from googling ‘IRS froze my account’ and ‘Steps to unfreeze my account’, be super active with your account. Pay your taxes on time, with or without the help of any tax specialists. Go along with the bank secrecy codes without violating any rules and regulations to stay safe from any suspicious activities. If the necessary precautions are taken, your account will be perfect without a chance of freezing.
Also, are you struggling to deal with these freezing frozen accounts? Tax Hardship Center, LLC might be the best and most helpful route to ease it out. They offer the smoothest service in resolving everything related to taxes. Extend a hand and call for help by letting them deal with your frozen accounts.
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