IRS will investigate and seize bank accounts of these individuals in the United States

The Internal Revenue Service (IRS) has stepped up its measures to ensure compliance with tax obligations in the United States.

Those taxpayers who repeatedly ignore payment notices and do not take steps to regularize their situation could face the seizure of their bank accounts and other assets.

The IRS is authorized to seize assets when a person owes taxes and does not respond to notifications sent by the agency. In many cases, the lack of communication with the agency can lead to the enforcement of severe penalties, such as the freezing of funds in bank accounts or the confiscation of properties.

How does the IRS levy process begin?

Before proceeding to a levy, the IRS follows a series of steps aimed at warning the taxpayer and giving them the opportunity to resolve their debt:

• Calculation of the debt and initial notification: The IRS determines the amount of unpaid taxes and sends an invoice to the taxpayer, explaining the details of the outstanding balance.
• Non-payment or no response: If the taxpayer does not make the payment or contact the IRS to arrange a solution, the collection process is initiated.
• Issuance of a Final Notice of Intent to Seize: At this point, the IRS sends a document titled Final Notice of Intent to Seize and Rights to a Hearing, where it informs the taxpayer about the imminence of the sanction. This notification is issued at least 30 days before the embargo.
• Notice of contact with third parties: In some cases, the IRS may notify banks, employers, or accountants to obtain information about the taxpayer's financial situation before executing the levy.

Deadline to avoid bank account seizure

When the IRS issues a levy order on a bank account, the bank is obligated to freeze the funds from the moment it receives the notification. However, the taxpayer has the option to 21 días to communicate with the IRS and reach a payment agreement.

If during this period the taxpayer does not respond or negotiate a solution with the IRS, the agency proceeds to withdraw the garnished money and apply it to the tax debt. It is important to note that the garnishment only affects the funds that were in the account at the time of the notification; deposits made afterward are not withheld.

What to do if you receive a seizure notice?

The best way to avoid a penalty is to respond immediately to any IRS notification. In case you receive a Final Notice of Intent to Seize, it is recommended:

• Contact the IRS as soon as possible to clarify the situation and prevent an irreversible action from being taken.
• Request a payment plan if the debt cannot be paid immediately. There are installment payment agreements that allow avoiding seizure.
• Review the notification carefully, since in some cases there may be errors or debts already settled. If the notice is considered incorrect, an appeal can be requested to avoid the sanction.

Consequences of the seizure of accounts and other assets

If a taxpayer repeatedly ignores IRS notices and does not establish a payment agreement, the agency may take drastic measures including:

• Bank account seizure, with the withdrawal of the owed money.
• Confiscation of personal property, such as vehicles, properties, and investment accounts.
• Automatic salary deduction, in which the IRS withholds part of the salary until the debt is covered.
• Forced sale of seized assets to settle the tax debt.

Measures to Avoid IRS Penalties

To prevent the IRS from taking severe actions against a taxpayer, it is recommended:

• Always respond to IRS notices and maintain communication with the agency.
• Request a payment agreement or an extension if the debt cannot be paid in full.
• Consult with a tax expert if there are doubts about how to resolve the situation.

Failing to pay a tax debt can lead to serious consequences that affect access to financial resources and a person's economic stability. Staying informed and acting promptly is key to avoiding unnecessary penalties.