Can My Bank Account Be Frozen
My question involves collection proceedings in the State of: Indiana
Hello,
My husband was seriously injured of July 2011 and has been off work since. He was put on workers compensation, but they did not pay his TTD regularly or his medical bills and we have gotten into serious debt. They quit paying his TTD all together 4 months ago, and our attorney is working on getting his back pay, but it could take months. His workers comp case is out of Illinois and with the recent law changes and overloaded courts, it could be awhile.
We owe back taxes in the amount of 2,000 and have an unfiled return. He also has a judgement against him for almost 2,000 from Capital One.
Becasue of our situation, me being laid off and him "pending disabled", he had to pull his pension. He was able to get around $22,000 after they withheld the 20% for the IRS. because he is still pending being disabled, they had to do his pension withdraw as "leaving the trade" and he was taxed, plus we will owe the 10% excise tax next year when we file.
We pulled this money to catch up our mortgage, file and pay the 2,000 in back taxes and also pay the judgement. We took the check to the bank today and they placed a hold on it, becasue of the large amount so it will not be available until for 7 business days, which actually means in about 2 weeks. Does the IRS get notified during that hold time about the check since it is large? it is from a pension fund. When they withheld the 20% for the taxes, does the Pension office send and report that right away to the IRS or do they wait and send it in when they file end of year taxes?
Our fear is that our account will be frozen in the mean time before the hold is released and I want to know if there is anything we can do to make sure that does not happen. We are paying the debts with this money anyways, but we also have to pay our mortgage holder within 2 weeks as promised and from what I understand if the bank account is frozen this could hold everything up for a lot longer then that.
This has been the worst year of our lives and I am not even sure how we have survived this long. I just want to get this debt paid and catch my breath for a minute.Between the stress of caring for my husband and our children, and then worrying about bills I just can't take much more!
Any advice is greatly appreciated.
Re: Can My Bank Account Be Frozen
You're asking whether the IRS will figure out that you hold a large amount of money within days to weeks of your depositing the money in your account, and garnish it from your account?
Re: Can My Bank Account Be Frozen
Hello,
I guess that it is what I am asking.
I know it seems far fetched, but since he fell 30 ft and broke his neck, nothing surprises me anymore. The tactics used by his former employer are alarming.
They wanted him to cover the accident up and put it on our personal insurance. If it wasn't so serious(broken neck, impinged/torn shoulder/cracked ribs and multiple lacerations) he may have, but we couldn't chance being stuck with 100,000K or more in medical bills. From the day he was finally placed on TTD, they have been trying to make our lives hell. I guess I just worry that they will notify the IRS that he has taken his pension before we can settle our debts. The day the check is supposed to clear, we have an appt with a CPA.
Thank you for your reply.
Re: Can My Bank Account Be Frozen
Although nobody can make promises, it's extremely difficult to imagine the IRS moving that quickly.