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Was Your Bank Account Balance Frozen By The IRS?


If the IRS determines that you owe back taxes, it may freeze funds in a bank account in your name. The agency will accomplish this by sending notice of a levy to the bank. Once the bank receives the notice, funds up to the amount of taxes that you allegedly owe are to be frozen immediately.

After 21 days, the freeze may result in a levy or seizure of those funds unless you:

  • Contact the IRS before the end of that time period (or a representative with power of attorney for you does so) and
  • Arrange to pay the taxes or
  • Prove that the funds in the account are not yours to take (for example, if the money belongs to a family member or someone else who allowed you to put your name on the account) or
  • Prove that the IRS is in error

To prevent or reverse the freezing of your bank account funds by the government, work closely with an attorney with detailed knowledge of the methods of the IRS. Bomar Law Firm, LLC‘s founder and leader is a former IRS Office of Chief Counsel attorney. Our clients directly benefit from his knowledge and experience regarding IRS processes and ways to overcome tax collection methods like a frozen bank account.

Overcoming Feelings Of Shock And Taking Action

Once funds have been frozen, your relief will come by getting the freeze lifted one way or another. If you have not secured a release of the frozen assets within 21 days, the IRS will first seize enough to pay any applicable fines and penalties and then it may take or levy the rest to fulfill your back tax obligation.

Do not let a sense of shock stop you from getting counsel on your tax problems as soon as possible. You may have been caught unaware if you did not receive or pay attention to notices the IRS sent to you before freezing funds in your account.

Could you have prevented the freeze? Maybe. To prevent the freezing of your funds, you would have needed to make payment arrangements or prove that the tax bill was in error. A skilled tax law attorney who handles litigation is your most important ally at this point. If you have received a notice of impending freezing of funds, explore your options with the help of an attorney at Bomar Law Firm, LLC.

The Funds Are Frozen, Not The Account

Keep in mind that an IRS bank account freeze will only apply to money that was in the account at the time. The account itself will not technically be frozen, most likely. If you add money to a bank account that the IRS has frozen, the new deposits should still be usable as usual, but you will not be able to use the frozen portion of your account until you satisfy timely requirements. In sum, a bank account freeze by the IRS means that a specific amount will not be available for withdrawal, up to the total amount of your back taxes or the total assets of the account.

Get Personalized Advice And Timely Help

The scenarios described here are typical, generalized examples and may not match your unique circumstances.  Whether your case arose from income tax audit, employment tax trust fund recovery penalty, syndicated conservation easement assessment, or other types of tax matters, we can work with you to stop IRS levy.  For best results when the IRS has frozen assets in your bank account, get an experienced tax lawyer’s advice right away. There is no time to lose. To schedule a consultation, call +1-404-841-6561 or email us through this website.