The CRA usually follows the following procedures prior to actually taking a taxpayer’s funds from their bank account:
1. They send a “notice of intent to levy” directly to the taxpayer
2. Issue a “letter of order” to the taxpayer’s bank, which freezes their account
3. Once the taxpayer’s account is frozen they can seize funds within 24hrs.
If you are at any of these stages in the bank levy process, it is important to act quickly to prevent further actions to be taken. Call us to speak with a tax professional who will outline your options.
The CRA has the ability to seize any funds in a taxpayer’s personal, business, or retirement account in order to service their outstanding tax debt. This usually occurs if they have sent the taxpayer a “Notice of Intent to Levy”, in which case the taxpayer should seek immediate assistance from a tax professional in order to prevent this action from being carried out. If this warning goes unanswered they will send a “Letter of Order” to the taxpayer’s bank forcing them to freeze all accounts. Once the taxpayer’s accounts are frozen, it can take as soon as 24 hours for those funds to be taken by the CRA and put towards the payment of a tax debt.
The speed at which this process takes places makes it important to seek representation quickly, and with a firm that has expertise in this area.