If a lien is filed for unpaid income taxes, does that include freezing your bank account?

Question

Sorry, yes, I am talking about the IRS.

Answer 1

No, it is just a lien against some of your property (ie a house) so if you try to sell it they get paid first.  They could freeze your accounts, but that would be a separate action.

Answer 2

A lien in itself, no. A lien and a garnishment/seizure of assets, yes, they can seize your bank account. There are regulations pertaining to that, however, so you should check with your individual state's laws relative to this. Oh, and one more thing: it does matter whether you're talking about the IRS or state taxes.

Answer 3

ignoring IRS? that is why a lien was filed.

Contact IRS at 1-800-829-7650 and set up an installment agreement.

The lien will not be removed until you full pay IRS, but at least they won't keep taking your money from your account.  

By now you may have $0 balance and checking bouncing.

Answer 4

No.

A lien, actually a notice of federal tax lien, tells potential creditors that the IRS has an interest in property of the person.

To take things, such as money in your bank account, is a levy. It has a different legal requirement.

Of course, the IRS can file a notice of federal tax lien and do a levy on your wages or bank account at the same time. if the legal requirements are met.

Answer 5

When the IRS freezes your bank account, you are about to have your money grabbed by the IRS.  They will take it all if you owe it.  It will take a good CPA to get it back, even if it was taken in error.

Call the IRS or go to IRS.gov and send in a payment plan to get them out of you bank account.  While you are making payments, you can argue your case.

Answer 6

It sure can

The IRS can be VICIOUS, Pay your TAXES!

Answer 7

A lien, or more properly a Notice of Federal Tax Lien is filed at the appropriate recording office based on where you live.  It is similar to having a notice of a court judgment filed against you and gives public notice that you have an outstanding tax debt. Your credit rating will take a nosedive as a result.

"Freezing" your bank account will occur if IRS serves a Notice of Levy to the bank.  That will result in the bank sending everything in your account (or full payment, whichever is less) to IRS and charge you a legal service fee of up to $100.  IRS can also serve a Notice of Levy on your wages and collect most of your disposable income.  

If you have got to this point, you are in serious financial difficulty.  You need to contact IRS or have a representative do it on your behalf to resolve the case either by agreeing to make payments that will pay what you owe or shoing that you can't pay anything right now.