If you do have a bank account, can you close it so the IRS can't put a levy on it?

Set up a blind trust controlled by someone you can absolutely trust, and move the funds there. You can also use the courts to protect you from a levy that would leave you unable to pay for the basic requirements, like a roof over your head, food, transportation, employment costs, utilities, etc.

Just remember that the IRS can throw you in jail for not paying whatever, so that’s something to keep in mind.

If you don’t do this properly as ETpro suggests, the IRS can add criminal charges for active evasion of payment. If there is a significant amount of money involved, lawyer up. If not, you need to weigh how much it is worth to you to fight or just let them take their claim and start over. Sometimes, especially if there is any legitimacy to their claim, it’s just easier and cheaper to first negotiate it down, then pay them off and get them out of your life. You should know that this is, in effect, a police organization with extraordinary powers.

It is not just the bank account but any revenue, properties and valuables. As the others above said if it is found to be intentional there can be a prison sentence.

@jca “Just remember that the IRS can throw you in jail for not paying whatever”

This is a common myth that’s untrue. The reality of owing a tax debt isn’t quite that exciting.

There are no debtors prisons in the U.S. The IRS doesn’t have the power or authority to incarcerate anyone, and people don’t go to jail or prison merely because they owe taxes.

The IRS’s role is to collect taxes. The IRS can lien property and garnish wages. If the taxpayer is cooperative and forthcoming, the IRS will agree to reasonable, manageable installment payments.

People do go to prison for tax crimes. When the IRS uncovers criminal activity, it refers the case to the Department of Justice for further proceedings.

It’s criminal tax fraud to conceal assets and willfully fail to cooperate with tax authorities. Nobody should attempt to hide money or other resources.

Yes, the IRS is like any other debt collector, but they’re actually pretty nice to work with, and they will work with you.

@Dutchess_III is absolutely right. I’ve been dealing with the IRS for 30+ years (not for myself, but on behalf of tax clients), and I’ve never had a bad outcome. The magic secret for disarming an IRS employee: be polite.

IRS workers – human beings, just like the rest of us – spend much of their days being treated in ways that border on, or perhaps really are, verbal abuse. I think it surprises them when they encounter decency. If you’re courteous, ask questions rather than make demands and accusations, toss in “please” and “thank you,” and behave in a civil manner, 99% of IRS employees will sincerely want to help.

When I started my business I found myself dealing the with State of Kansas and the IRS a lot. I’d heard the horror stories….and was really quite surprised at how nice they actually are.

I bet they go through crap @SadieMartinPaul. A person would be a fool to piss them off!

^^^ So many people mistreat and bully restaurant servers. How amazingly stupid is that? Why would you want to hurt, offend, and annoy someone who handles your food?! The revenge opportunities are so disgusting, I’d rather not even think about them.

It’s equally foolish to abuse an employee at any tax authority. This is a person who’s in an excellent position to help you and resolve your problems, but who can also make things more difficult out of spite.

Really! Bullies just suck.

^^^ When I was young, single, and dating, I got some very memorable and valuable advice – judge a man by his interactions with waitresses and cashiers.

When you and he are first seeing each other, of course the guy will be lovely to you. He’s still trying to charm and impress you, and he wants you to like him (he’s also hoping you’ll take your clothes off, but let’s not go there). If he bullies and abuses defenseless women in service positions, however, he’s a bad person. This is someone you don’t want to be with. And, it’s just a matter of time before the “Nice Mask” fades and he’ll be nasty to you, as well.

Sound advice. I’ll pass that on to my granddaughters.

It’s interesting that these message threads have the same easy, flowing meander of any conversation. This thread’s a good example. The original question was about closing a bank account and moving cash beyond the IRS’s reach. Now, the discussion has morphed to dating advice!

…Waiting for the mods to trample upon us! :D

^^^ As long as the language is clean and the tone’s civil, and if nobody’s being a troll, I think the moderator’s ok with threads that meander. If we were all sitting around a table, having coffee and chatting, our discussions would do exactly the same thing. That’s just the normal, natural evolution of conversation.

Sometimes they are, sometimes they ain’t! Just depends on if Auggie’s taken her meds that day. ;). [OFF TOPIC!!!]

@SadieMartinPaul: Wasn’t there some black celeb recently who went to jail for owing an IRS debt? I forgot who. I believe they would go to federal prison, since it’s a federal crime. There are no debtors’ prisons, like you said. That’s correct.

But trying to hide millions is a crime. Just not being able to pay that $1,400 you owe will just get you hassled.

@jca I believe you’re thinking of Wesley Snipes.

Although he had an enormous tax balance due, no, Mr. Snipes didn’t go “to jail for owing an IRS debt.” It’s not a crime to owe taxes.

Mr. Snipes, along with two co-defendants, was tried in a federal district court. A jury convicted him of misdemeanor tax fraud and conspiracy. The court had already dismissed several, more serious felony charges that would have resulted in a much harsher sentence.

@SadieMartinPaul: OK thanks. Good to know.

Back to the question, for the OP or her friend, yes, they will allow you money to live and not take more than a percentage of your income (garnish). However, the longer it takes someone to pay off the amount owed, the more they’ll end up paying in fees and interest.