IRS Bank Account: Can They Take My Money?

In a situation where you file your tax return with the IRS and owe money to them and do not pay, the IRS has the ability to take money from your checking account. If you contact them and try and arrange a payment plan they will most likely work with you and avoid taking money from your bank account.

IRS Bank Account Seizure

There are many steps that will be taken before going after the money in your bank account. They begin these steps after April 15th even if you filed a six month extension you are still required to at least make some kind of estimated tax payment.

The IRS understands that some taxpayers may not be able to afford the entire tax bill on April 15th and have different options for the taxpayer to consider. Some of these options include payment plans and an offer in compromise. These can be very beneficial for the taxpayer because they can pay their tax liability over time or in a smaller than required lump sum. Remember when considering these options that the IRS will ultimately charge interest because you are taking longer than expected to pay your tax liability.

Failure to Carry Out Payment Options

Failure to carry out these payment options will result in the IRS contacting you and explaining your tax liability needs to be paid. If the taxpayer continues to ignore the requests of the IRS to pay their tax liability the IRS will go a step further and levy the taxpayer’s personal assets. A levy will allow the IRS to take any of the taxpayer’s personal assets including money in a bank account to cover the cost of their tax liability.

Bank Account Levy

If the IRS establishes a levy on your personal bank account, any money that is deposited into your account will be required to be held by the bank for twenty one days. After twenty one days the bank determines the IRS is still requesting your money they will ultimately send it to the IRS.

All that is needed to keep this from happening is to not ignore the IRS and try and work out a solution that is beneficial for both you and the IRS.

About Paul Gaulkin CPA

Paul Gaulkin is a Certified Public Accountant and enrolled with the U.S. Treasury to practice before the IRS. Mr. Gaulkin possesses unique technical knowledge in the process of securing relief for taxpayers nationwide with IRS and State tax problems. With an accounting degree from Florida International University, he is able to transform complex tax and accounting problems into easy to understand solutions.


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