New IRS rule could leave you without a bank account overnight, check requirements
The IRS are set to close a series of bank accounts. Check if you are on their list.
The IRS, the body in charge of making sure everyone is up to date with their taxes, has implemented a system that will see bank account closures overnight if the money is not paid.
Before any closure, the IRS will try and contact the person in question to organise a payment plan that does not bankrupt the individual. If communication is impossible, however, a seizure of the bank account could be a further step.
“An IRS levy is the legal seizure of your assets to satisfy a tax debt. They can take wages, money from your bank or other financial account; or take and sell your vehicle(s), real estate, and other personal property,” explains the IRS.
The IRS is preparing to fire up to 15,000 workers amid tax season, with sources saying the cuts could come as early as next week as part of President Trump and Elon Musk’s plan to downsize the government. ABC News' @SelinaWangtv has more. https://t.co/QgAX7wRgUQ pic.twitter.com/hp3GRHstyy
— Good Morning America (@GMA) February 16, 2025
The IRS process of closing down your account:
- The IRS assesses the tax and sends a bill to the taxpayer.
- The person does not pay his or her taxes
- IRS sends a Final Notice of Intent to Levy and your Rights to a Hearing at least 30 days before imposing the penalty
- IRS sends advance notice that it may contact third parties (such as banks, employers, customers, or accountants) to obtain information about your tax situation.
Once the notice of levy on the bank account is made official, the IRS will wait a total of 21 days before acting upon it. During this period, the taxpayer has a final chance to contact the IRS and create a plan to repay the money.
BREAKING: “Musk’s DOGE is seeking access to a heavily-guarded IRS system that includes detailed financial info about every taxpayer, business and nonprofit in 🇺🇸 — sparking alarm within the tax agency.”
— Morgan J. Freeman (@mjfree) February 17, 2025
Alarmed yet? pic.twitter.com/NeoQsuFbgJ
If an embargo has been placed, the money inside the account will become frozen. Following this step, the taxpayer must organise a tax payment plan as well as financial information in order to keep up to date with the IRS.
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