Frozen Funds in Boise? Understanding Your Options When the IRS Freezes Your Account
Finding your bank account suddenly frozen by the IRS can be a terrifying experience for any Boise, Idaho resident. It can disrupt your personal finances or cripple your business operations. However, it’s crucial to understand that this isn’t the end of the road. You have options, and acting quickly and strategically is key. Here’s a breakdown of what you can do if the IRS freezes your account in Boise.
Understanding the Levy (Freezing Funds)
An IRS account freeze is typically a levy, which is a legal action the IRS takes to seize your property to satisfy a tax debt. Before levying your bank account, the IRS is generally required to send you a notice of intent to levy at least 30 days prior. If you didn’t receive this notice, or if the levy seems unwarranted, this is a critical point to discuss with a tax professional immediately.
Contact the IRS Immediately If They Froze Your Account
Your first step should be to contact the IRS Revenue Officer who issued the levy. Their contact information should be on the notice you received (if you did). Understand why the levy was issued and what steps the IRS requires to release it. Keep detailed records of all communication.
Consult a Boise Tax Resolution Specialist
Navigating the IRS bureaucracy and understanding your options after a levy is complex. This is where we, a local Boise tax resolution specialist, become invaluable. We have experience dealing with IRS levies and can assess your situation, explain your rights, and help you develop the best course of action.
Exploring Your Options With IRS
Depending on your circumstances, we can help you explore several options:
- Paying the Tax Debt: If you can pay the full amount owed, including penalties and interest, this is the quickest way to get the levy released.
- Setting Up a Payment Plan (Installment Agreement): If you can’t pay the full amount immediately, you may be eligible for an installment agreement with the IRS. Your tax advisor can help you determine if you qualify and negotiate the terms.
- Offer in Compromise (OIC): An OIC allows you to settle your tax debt for a lower amount than what you owe. Your Boise tax expert can assess your eligibility and help you prepare a compelling OIC application. (More on OICs in the next blog post!).
- Tax Relief Programs: Depending on your financial situation, there may be other tax relief programs available. A local professional can help identify if any of these apply to you.
- Demonstrating Financial Hardship: If the levy creates significant financial hardship, preventing you from meeting basic living expenses, your tax advisor can help you present this case to the IRS for a potential levy release.
- Challenging the Levy: If the IRS didn’t follow proper procedures or if you believe the levy is incorrect, your tax advisor can help you challenge it through appeals processes.
Acting Quickly is Crucial If You Want Your Account Unfrozen
The longer your account remains frozen, the more difficult it can become. Contacting the IRS and seeking professional help from a Boise tax resolution specialist (Tax Relief Advisers) as soon as possible is essential to understanding your options and working towards a resolution to regain access to your funds.
Don’t face this stressful situation alone. We, a local Boise tax professionals, can be your advocate and guide in navigating the complexities of an IRS account levy.