Is there any way my boyfriend can protect himself from the IRS freezing his bank account, which has caused financial difficulties and an eviction notice due to unpaid rent? What steps can he take to address this situation and potentially resolve it?
Answered on September 15,2023
Generally, a bank account is not levied simply for an audit. An account must be in collections (usually) to be levied.
And when an account is levied, it is usually done after multiple years of ignored correspondence and ignored contact. There are steps the IRS must take before levying an account.
He needs to speak to someone who can potentially get the levy released. He needs a credentialed tax professional (CPA, Enrolled Agent, or Attorney) with experience in tax resolution issues.
He can search the IRS Directory of Credentialed Preparers.
He can visit TaxCure, a website that matches folks with tax problems to professionals working in that industry.
He can visit a Low Income Tax Clinic, but there are income threshholds.
He should NOT ignore it, and he should NOT call one of those places that advertises they can settle any tax debt.
Whatever he does, he needs to do it ASAP. If they are levying bank accounts, there is a good chance they may try to levy payments from clients or vendors who pay him. And there are only a certain number of days to respond or appeal.
This is not something that just popped up. This is multiple years of neglect or ignoring, and he needs to act quickly. He may not owe them as much as they say, or even anything at all (he could even be due refunds). The only way to know for sure is to file a complete and accurate return for each missing year.