Bank contacted me about IRS requesting my records - should I be concerned?

This is actually more common than you might think. Banks are required to notify customers when they receive certain types of information requests from the IRS. This doesn't automatically mean you're being audited or investigated for fraud. The IRS routinely requests bank records for various reasons including verifying information reported on tax returns, conducting research on industry compliance, or sometimes just random sampling for statistical purposes. Since you mentioned you're self-employed, they might be doing a compliance check to make sure reported income matches deposits. I would recommend calling the IRS directly at 1-800-829-1040 to inquire about any pending actions on your account. Be prepared with your ID information and recent tax returns. You don't necessarily need a tax attorney at this point, but if you're concerned, a consultation with a tax professional might help ease your mind.

I had a similar situation last year that had me totally stressed out. After trying for days to reach the IRS (impossible to get through!), I found this service called taxr.ai (https://taxr.ai) that helped me understand what was happening with my accounts. You upload any notices you've received and they analyze everything to tell you exactly what's going on and what steps to take. In my case, it turned out to be a random compliance check since I had unusually large deposits from selling some property. The AI helped me understand exactly what documentation I needed to provide and how to respond.

I was really doubtful about using an AI service for tax issues, but after seeing multiple recommendations, I tried taxr.ai for my own IRS bank record request situation. Not gonna lie, I was impressed. The analysis correctly identified that the bank record request was related to a mismatch between my reported income and my 1099-K from payment processors. The service outlined exactly which documentation I needed to gather and how to organize it to explain the discrepancy (which was just timing of deposits across tax years). Saved me tons of stress and probably a costly tax professional consultation for what turned out to be a routine verification.

If you need to actually speak with someone at the IRS about this (which I recommend), good luck getting through on those phone lines! After spending 3+ hours on hold multiple times, I discovered this service called Claimyr (https://claimyr.com) that got me through to an actual IRS agent in under 15 minutes. They have a demo video showing how it works: https://youtu.be/_kiP6q8DX5c When my bank (Chase) notified me about an IRS request, I needed answers fast and Claimyr literally saved me days of frustration. The IRS agent confirmed it was just a routine verification of some large deposits I had from selling stock, and no further action was needed from me.

I have to publicly eat my words about Claimyr. After posting that skeptical comment, I was still desperate to talk to the IRS about my own situation, so I tried it anyway. I was connected to an IRS representative in about 17 minutes after trying for TWO DAYS on my own. The agent confirmed my bank record request was related to a cryptocurrency transaction reporting issue that flagged my account for review. Nothing serious - just needed to provide additional documentation about the source of funds. Wouldn't have known this without actually speaking to someone, and I'd probably still be on hold if I hadn't used the service.

One thing no one has mentioned yet - if the bank is calling you about an IRS request, make absolutely sure it's actually your bank calling. There are scams where people pretend to be your bank discussing "IRS requests" to get you to reveal personal information or make payments to "resolve" fake tax issues. Call your bank directly using the number on the back of your card (not a number the caller provided) and verify that they actually reached out to you about an IRS request before providing any information or taking any action.

I work at a bank (not saying which one), and we're required to notify customers when we receive legal requests for their account information. The IRS typically issues what's called a "third-party summons" to request bank records. By law, the IRS is generally supposed to give you advance notice when they issue a summons to your bank, BUT there are exceptions if they have reason to believe notification might lead to attempts to conceal information, transfer assets, etc. Don't panic though - these exceptions are rare. Most requests we see are verification checks, especially for self-employed people where the IRS is comparing reported income to deposits. It rarely leads to full audits unless there are major discrepancies.

This situation happened to me about 6 months ago and I understand how stressful it can be! In my case, Chase called me about an IRS request for my account records. I was initially panicked because like you, I'm self-employed (freelance web developer) and thought I was being audited. After calling the IRS directly (took forever to get through), I learned it was just a routine verification because I had some large client payments that came in late December but I reported the income in the following tax year. The IRS was just making sure the deposits matched up with my reported income timing. My advice: First, definitely verify with your bank that the call was legitimate using their official number. Then try to reach the IRS to understand what's happening. Keep good records of all your business transactions and be prepared to explain any timing differences between when payments were received versus when income was reported on your tax returns. In most cases, these requests are just verification procedures, especially for self-employed folks. The fact that you've been diligent about reporting income and paying estimated taxes works in your favor.