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Carpe Diem
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20,742 Posts
Discussion Starter · #1 ·
Just found out my business partner is behind with his personal income taxes. My fear is that the IRS will go after our business account.
So, can the IRS go after an LLC business account if one of the owners is behind on personal income tax? :sad: Would hate to get a $15,000 deposit from a customer and then have (some of) it disappear.
 

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DavidC
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2,550 Posts
Time for a little self defense lawyer visit just in case. But here's my free advice, and worth every penny.

In theory the LLC is a separate entity and safe from attachment. But a creditor can attach assets, which would include the partners share of ownership. From that they could intercept payments due him or possibly force the sale of his shares.

I'd definitely spend an hour with my attorney. It's much safer for you.

Good Luck
Dave
 

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strat hd
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1,695 Posts
The IRS is willing to work with people in these times. Worst thing your partner can do is ignore them. Thats when it gets bad. Talk to a lawyer. You won't know for sure if your partner is dealing with them or not.
 

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Carpe Diem
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20,742 Posts
Discussion Starter · #5 ·
Thanks.

Not too worried. Short term solution, pull him off the bank account. Doesn't exonerate him but definitely makes it harder for them to get to the account without his SSN there.

I feel bad for him. Unplanned kid showed up last year (getting snipped this year :blink:) and a string of credit issues from '04 surfacing now (can you say balloon????). He didn't plan too well when we went off on our own. I don't think it's a lot of cash...perhaps under $8k but I just cannot take the hit of a levy on our business account. We invested in the business this year and our capital is lower than we'd like.
 

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Project Manager HFH..
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3,711 Posts
Be prepared...The IRS will go after a piggy bank if they can...
 
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