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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
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Experience:  10 years experience
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We have a business that has been incorporated 20 years.

Customer Question

We have a business that has been incorporated for over 20 years. We have back taxes due from a capital gain, due to an eminent domain sale. My husband and I are the sole owners of the company. The IRS is not wanting to work with us. Our question is simple, can the IRS freeze our personal bank accounts? Unfortunately, we did not have control of the company until September of last year and had no idea that a substantial amount of money was owed to the IRS. We have real estate that we are getting a loan against at this time, but we need to make sure our own funds can't be seized and/or our property, which is seperate from the corporate property and bank account.
Submitted: 2 years ago.
Category: Tax
Expert:  Lane replied 2 years ago.
Hi,.If the tax bill is a tax bill OF the corporation, AND if you've done a good job of NOT commingling funds with the company, so that IRS cannot try to pierce the corporate veil under alter ego theory, then no, they cannot..Corporations are required to observe formalities, such as regularly scheduled shareholder meetings, accurate and current financial records, and signing all documents in the corporation's name. Failure to do this can expose shareholders to liability for back taxes for a corporation. .
Expert:  Lane replied 2 years ago.
Further they cannot place liens or levies on personal accounts until three requirements have been met::They've assessed the tax and sent you a Notice and Demand for Payment;You've neglected or refused to pay the tax; andThey sent you a Final Notice of Intent to Levy and Notice of Your Right to A Hearing (levy notice) at least 30 days before the levy. They may give you this notice in person, leave it at your home or your usual place of business, or send it to your last known address by certified or registered mail, return receipt requested.
Expert:  Lane replied 2 years ago.
But again,, if this is a corportion and you've followed the corporate law of yur state, they would have to prove the shareholders are maintaining the corporation for the sole purpose of keeping assets shielded, before any PERSONAL assets can be siezed
Expert:  Lane replied 2 years ago.
Did you see that? (hard to know what you're seeing) ... I accepted the phone consult offfer, but the system told me that there was a problem with the payment
Expert:  Lane replied 2 years ago.
Let me try it from my end
Expert:  Lane replied 2 years ago.
sorry got an error message.
Expert:  Lane replied 2 years ago.
Maybe we can continue here?

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