The United States IRS is undoubtedly one of the most efficient organizations when it comes to doing its job. In this sense, United States citizens have a direct obligation to pay their taxes every year, thus sending in their Tax Return with all the corresponding documentation.
However, there are occasions when a citizen may not pay their mandatory taxes on time. In that case, we may find ourselves in a bit of a compromising situation, as the IRS could take action and end up canceling our account and opening an investigation.
But before reaching that point, the IRS does several things first. That is to say, we will receive a notice prior to the cancellation of the bank account, so we will have time to fix the situation before it becomes a real problem in our lives.
What does the IRS do before canceling our account?
Before the Internal Revenue Service (IRS) cancels our bank account, it will conduct an investigation into our tax payments. If we have failed to pay our taxes, we may face this problem.
However, we will be given time to fix the problem. The IRS does the following before canceling the taxpayer’s bank account:
- It sends the taxpayer an invoice with all the information about the unpaid taxes.
- The IRS does not get the payment of those taxes.
- The Internal Revenue Service sends a Final Notice 30 days before imposing the corresponding penalty.
- Finally, before the account is canceled, the IRS sends a new notice to let the taxpayer know that they will need to contact third parties for information about their tax situation.
Knowing this, we can see that it is possible for the IRS to cancel our account if we do not fulfill all our tax obligations. Therefore, there is no doubt that the best idea is to pay taxes in a timely manner.
Tips to prevent the IRS from canceling our bank account
First of all, what we have to bear in mind to avoid the cancellation of our bank account is to pay all our taxes in due time. It is also important to send the Tax Return on time. If we don’t do this, we could have many financial problems in the future.
The moment the IRS sends us a notice that we have a tax-related debt, we must not hesitate for a second. We have to try to fix the situation as soon as possible. If we have any doubts, we can always turn to a specialist or even the IRS itself to sort out the whole situation.
