The Internal Revenue Service of the United States is without a doubt one of the most efficient organizations in terms of job performance. In this sense, US citizens have a direct obligation to pay their taxes each year by submitting their Tax Return along with all necessary documentation.
However, there are times when a citizen does not pay their required taxes on time. In that case, we may find ourselves in a compromising situation, as the IRS may take action, canceling our account and initiating an investigation.
However, before getting there, the IRS must first complete a number of tasks. That is, we will be notified prior to the cancellation of the bank account, giving us time to resolve the situation before it becomes a major issue in our lives.
What does the IRS do before canceling our account?
Before canceling our bank account, the IRS will investigate our tax payments. If we have not paid our taxes, we may face this problem.
However, we will be given time to address the issue. 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 the IRS may cancel our account if we do not meet all of our tax obligations. As a result, paying taxes on time is unquestionably the best option.
Tips to prevent the IRS from canceling our bank account
First and foremost, in order to avoid bank account cancellation, we must pay all of our taxes on time. It is also critical to submit the tax return on time. If we do not do this, we may face serious financial problems in the future.
When the IRS sends us a notice that we owe money on taxes, we must act immediately. We need to try to resolve the situation as soon as possible. If we have any doubts, we can always consult a specialist or the IRS to resolve the situation.
