The I.R.S. just put a Lien on me..can I open a new bank account?

Question

I have been dealing with theses pricks for awhile now. They sent me a return for the year 2001 and then sent me a bill for the same year acouple months later. In my mind thats fine that I owe them money but don't send me $1200 and then ask me for $3500 on their mistake. Long story -short..They just sent me notifacation that a Lien has been placed against me. I will set a payment plan up with them but I closed all my bankaccounts before they could get to them (cat and mouse). If I open a new bank account at a different bank how long will it take for them to track me. I know this sounds stupid of me and I agree but I am extremely stubborn and its the principle that makes me mad. They made the mistake in the return not me. I owe you $2300 thats fine don't send a return and then ask for what i owe and the extra you sent me?????

Answer 1

If that happened to me I would not open an account in any US bank. If you need a US$ account you could open one in a foreign country -- say Belau or Marshall Islands, which apparently are within the US banking system -- although there was a dispute last year with the bank handling check clearing for the Marshall Islands Bank, U.S. Citizens Security Bank: http://www.yokwe.net/modules.php?op=modload&name=News&file=article&sid=944

Canadian banks offer US$ accounts but the new tax treaty protocol with Canada provides for mutual collection assistance with respect to citizens of the "other" country. Also, Canadian US$ checks do not necessarily clear at par in the USA: you have to make sure that yours will.

Most people in your position deal strictly in cash. If you receive checks, others could cash them but then they risk being held liable as having contributed to "fraud upon creditors". If you have a bank account with an overdraft facility then you can maintain a balance of nearly zero with the overdraft facility covering the "float" when you deposit a check and withdraw the money in cash immediately.

Your social security number, though, will give away your account very quickly. Opening a business account in the name of an LLC treated as a corporation would hide the account for a while but is not a long-term strategy and is expensive.

If you just want a place to keep some cash, a Mexican bank would be good -- if you are near the border. Otherwise, travellers checks are handy but theoretically subject to the lien.

If you filed a return, you could eventually wipe out the debt, and the lien as to future assete, by filing bankruptcy. There's not enough money at stake to expatriate, but many richer tax debtors have done that. Notably Marc Rich, who lives in Zug, Switzerland and renounced his US citizenship long ago.

Answer 2

Yes they can levy the account, and they will. When the IRS (or state government) places a levy on a bank or other financial account, the account is frozen for 21 days while ownership of the funds therein is sorted out. Any joint owners have those 21 days to provide proof that any of the funds in the account are theirs and not subject to the levy. If you have not provided satisfactory proof at the end of the 21 day freeze period the entire balance of the account will be subject to seizure. Needless to say, during the 21 day freeze period, nobody can access any of the funds in the account. Attempting to remove names from accounts, deeds, titles, etc. will not work. Hiding ownership of assets to avoid a lawful levy is a felony, so don't even think of going that route!

Answer 3

If the IRS put a levy on you, opening a new bank account probably will not help. They will be able to get that information. They can also seize anything else that you own. Cars, house anything. Just make your payments on time and you should be OK. Pay it off early if at all possible. The IRS compounds penalties and interest daily. It could get very costly in the end.

Answer 4

Its not their mistake, its yours. Tax refunds (a return is the form you send them) are processed before returns are audited.

The IRS bank will find out about the IRS lien before they open the account. They will then inform the IRS of the new account or refuse to open the account.

Answer 5

Yes, but I would go to another Bank....Plus Set the account up with 2 names....such as Jane Doe-Mithe,
I think this save me one time....
my Bank for 35 years w/J-M last Name was not affected,-

--5 Year old account w/ bank #2 wtih a single last name was taken....
Just a Thought... Ok....Next your could Open a mattress Account...lol...

Answer 6

yes but they will put a lien on that money also