When it comes to carrying out its duties, the US IRS is without a doubt among the most effective agencies.
In this regard, citizens of the United States are directly required to file their tax returns together with all supporting documentation each year in order to pay their taxes.
Nonetheless, there are times when a person could fail to make their required tax payments on time. In that scenario, we might be in a precarious position because the IRS might take action, terminate our account, and launch an inquiry.
However, the IRS takes a few steps before getting there.
To put it another way, we will be notified before the bank account is cancelled, giving us time to make the necessary corrections before it becomes a serious issue in our lives.
How long does it take the IRS to close our account?
The Internal Revenue Service (IRS) will look into our tax payments before closing our bank account. We might run into this issue if we haven’t paid our taxes.
But we’ll have time to resolve the issue. Prior to closing the taxpayer’s bank account, the IRS takes the following actions:
- An invoice containing all the details regarding the overdue taxes is sent to the taxpayer.
- The payment of the taxes is not received by the IRS.
- Thirty days before to applying the associated penalty, the Internal Revenue Service issues a Final Notice.
- Lastly, the IRS sends a second notification to the taxpayer informing them that they will need to contact third parties to obtain information about their tax status before the account is closed.
With this knowledge, we can see that if we fail to pay all of our taxes, the IRS may terminate our account. Consequently, timely tax payment is without a doubt the wisest course of action.
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Advice on how to keep our bank account from being closed by the IRS
First and foremost, we must pay all of our taxes on time in order to prevent the closure of our bank account. Additionally, timely submission of the tax return is crucial.
We may face numerous financial issues down the road if we don’t take this action.
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We must act without hesitation as soon as the IRS notifies us that we owe money on our taxes. As quickly as possible, we must attempt to correct the issue. We can always consult an expert or even the IRS itself to resolve any questions we may have.