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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28081
Experience:  Taxes, Immigration, Labor Relations
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Can the IRS levy our business bank accounts tax

Customer Question

Can the IRS levy our business bank accounts for personal tax debt? We are an s corporation. Also we have a rental property than is lien free in a LLC. Can that be levied for personal tax debt?
Submitted: 5 months ago.
Category: Tax
Expert:  Lev replied 5 months ago.
In general -if you owe income taxes personally, the IRS cannot levy or garnish your corporation's bank account to satisfy your personal income taxesUNLESSthe IRS can prove that you are using the corporation to shelter personal funds from IRS collectionor you are using corporate account for personal reasons - for instance to pay your personal bills.So you would need to be very careful that the corporation bank account is used ONLY for business purposes.
Expert:  Lev replied 5 months ago.
Another possibility - as that is a personal tax debt - all your personally owned assets may be levied.That includes your ownership interest in the LLC.So while assets owned by the LLC may not be levied - the LLC itself may be taken from you (or at least the ownership interest you own)...The best way to avoid such situations - would be to negotiate an installment payment plan with the IRS...I appreciate if you take a moment to rate the answer.Experts are ONLY credited when answers are rated positively.If you still have any doubts, need clarification - please be sure to ask.I am here to help you with all tax related issues.

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