Texas residents and business owners with unpaid state tax obligations are being urged to pay close attention to an aggressive enforcement tool known as the “Hard Freeze.” According to recent reporting, the Texas Comptroller of Public Accounts has the legal authority to freeze bank accounts almost instantly without prior notice when certain tax debts go unpaid.
Under Texas law, the Comptroller can issue an administrative levy, formally called a Notice of Freeze, directly to a bank. Once received, the financial institution must immediately halt outgoing transactions up to the amount of the tax debt, including penalties and interest. Unlike traditional lawsuits, there is no warning to the account holder, meaning many people only discover the freeze when a debit card or payment is suddenly declined.
After a freeze is imposed, banks are required to hold the funds for up to 60 days, during which the state can seize the money to satisfy the outstanding tax bill. If the debt is not resolved during this period, the Comptroller may levy the funds outright.
The risk is exceptionally high for businesses that have fallen behind on Texas franchise tax filings. Beginning in 2026, entities that receive a Notice of Forfeiture of Right to Transact Business may expose not only company accounts but also the personal bank accounts of officers and directors to potential freezes, making the consequences far more severe.
Some funds are protected. Federal and state rules generally shield Social Security, VA benefits, and certain disability payments, usually for up to two months. However, if those protected funds are mixed with other deposits, banks may still freeze the account until exemptions are clearly documented.
Those affected by a hard freeze are advised to contact the Comptroller’s Enforcement Division immediately. In some cases, setting up a payment plan or demonstrating financial hardship can result in a release of the freeze.
With Texas increasing enforcement activity and using faster, data-driven systems to identify delinquent taxpayers, experts warn that staying current on state tax filings is critical to avoiding sudden disruptions to cash flow.
Source: SavingAdvice.com
Article: Texas Comptroller Alert: The ‘Hard Freeze’ Rule That Can Lock Your Bank Account in Seconds by Teri Monroe
Original link: https://www.savingadvice.com/articles/2026/01/18/10715133_texas-comptroller-alert-the-hard-freeze-rule-that-can-lock-your-bank-account-in-seconds.html