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My BIL, who owes me money, says he cashed in his retirement account. He deposited it into his bank ($32K) and said the bank put a hold on the check.
When he went to withdraw the money he owes me, he says the IRS froze the account, claiming he owes back taxes of $80K.
Now, a couple of points:
-I know I should not have loaned him money.
-He has a long history of financial scams.
-It seems unlikely, given his nomadic job history, that he managed to accumulate that much in unpaid taxes and not hear a word from the IRS until now.
The question is is this something the IRS could/would actually do? How did they find out about it?
Another tale of misery at the hands of the IRS. IRS levies are forward looking meaning that they take money put in the account after the levy is served on the bank. So, assuming the BIL is stupid enough to use a bank account with a prior levy (he is required to get written notice of the levy) it is possibl;e.
Another tale of misery at the hands of the IRS. IRS levies are forward looking meaning that they take money put in the account after the levy is served on the bank. So, assuming the BIL is stupid enough to use a bank account with a prior levy (he is required to get written notice of the levy) it is possibl;e.
I'd want to see the paperwork.
Thats what I would say too! know that there was an appellant court ruling on the IRS dated January 25, 2005 to which they were told by the court that they ( The IRS) could not place liens on homes, attach bank accounts , Etc. until such time they had prevailed in a Federal court case in the matter. So with that said you need to see the court case from the first case where they PROVED that he in fact did owe back taxes. You can check the ruling just go to IRS Appellant court ruling 1/25/2005 that should bring up the whole case.
Here is a nice link to the rules IRS uses for levy. Please note that if you get a notice of intent to levy and you file a Collection Due Process petition IRS From 12153, IRS will not levy your account until the hearing is held (usually about 6 months later).
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