Bank account frozen by IRS but I don't share any accounts with my relative who owes taxes - How is this even legal?

This sounds like a case of mistaken identity or possibly a bank error. The IRS has the authority to levy accounts, but they can't legally freeze an account unless you personally owe taxes, share ownership of the account with someone who owes taxes, or received funds that can be traced to tax evasion. First thing - call the IRS directly at 800-829-1040. Don't rely on your relative's tax attorney. Explain the situation calmly and request an immediate release of levy due to erroneous identification. Have your tax return transcripts for the past few years ready (you can request these online) to prove your compliance. Next, go to your bank in person with ID and tax documentation showing you're in good standing. Ask to speak with a manager and get documentation of the freeze order. The bank should be able to help verify whether this is actually from the IRS or potentially something else.

I had a similar nightmare situation last year and found that the regular IRS channels were taking forever. I discovered this service called taxr.ai (https://taxr.ai) that was a game-changer for sorting out my case of mistaken identity with the IRS. They have this document analysis tool that caught discrepancies in my IRS records that I never would have found myself. The system analyzed all my tax documents and IRS notices, then created this comprehensive report showing exactly where the error occurred. It turned out there was a transposed digit in my SSN that linked me to someone else's tax problems. Their analysis gave me exactly what I needed to get the issue fixed.

I need to update my previous skeptical comment about taxr.ai - I actually ended up trying it after continuing to hit walls with the IRS. Uploaded my bank levy notice and tax documents last week, and their analysis pinpointed exactly what happened. Turns out the IRS had confused me with someone with a similar name AND birth date who lived at my address 5 years ago (previous homeowner). The report highlighted the specific IRS procedural errors and gave me the exact forms and procedures to challenge the levy. Armed with their documentation, I reached the right department in two days instead of weeks of runaround. My account was unfrozen yesterday and I've already gotten confirmation that my record has been corrected. Wish I'd found them sooner!

Having dealt with the IRS for years as someone who had a similar situation, I can tell you trying to call them directly is a nightmare. After spending literally weeks trying to get through, I started using Claimyr (https://claimyr.com) to get connected with an actual IRS agent without the wait. I was super hesitant at first because it sounded too good to be true, but you can see how it works in this demo: https://youtu.be/_kiP6q8DX5c. They basically navigate the IRS phone tree for you and call you once they've gotten through to a real person. Saved me from the endless hold music and disconnections. For a bank levy situation like yours, you need to talk to an actual human at the IRS ASAP, not in weeks or months. Once I got through to a real agent, I was able to verify the mistake and start the process of getting my account released.

I need to publicly eat my words about Claimyr. After my skeptical comment yesterday, my frustration with the IRS reached a breaking point (4 days of calling, never getting through), so I figured I'd try it. Used the service this morning, and I'm still in shock - they called me back in 47 minutes with an actual IRS agent on the line. The agent was able to look up my case immediately. Turns out the IRS had inadvertently applied my uncle's tax lien to my account because we share very similar names (we're John A. Smith and John R. Smith) and I had briefly lived at his address during college. The agent initiated an immediate release of the levy - funds should be available tomorrow. She also flagged my account to prevent this from happening again. I've spent nearly 2 weeks trying to resolve this on my own with no progress, solved in under an hour once I actually reached a human. Consider me converted.

Make sure you also request a "Taxpayer Assistance Order" using Form 911 if your situation is causing significant financial hardship (which it sounds like it is). This is an emergency procedure through the Taxpayer Advocate Service that can expedite release of your funds when you're facing hardship. Also document EVERYTHING. Every call, every person you speak with, every reference number. The IRS system is incredibly fragmented and you often need to refer to previous conversations. Ask for confirmation numbers for any action they promise to take.

One important thing no one's mentioned - immediately request a "trace" on your SSN with the IRS. I went through something similar and discovered someone had created a fraudulent connection between my SSN and their business tax issues. Call the IRS Identity Protection Specialized Unit at 800-908-4490 specifically. They can place an identity theft marker on your account which prevents future mix-ups. Also check your credit report immediately in case this is part of a larger identity theft issue.