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Can individual taxes be withdrawn from a business account?

martett
Level 2

I have a client with a large individual tax liability.  Their funds are in their business account.  Could they be set up for withdrawal from a business account on a 1040?

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3 Comments 3
Katie C
Level 2
  • Entirely depends on business type and whether they have adequate equity 
dkh
Level 15

I've done it many times for client that is the only owner or shareholder or member of the business. 

I use IRS Direct Pay instead of the withdrawal with efiling F1040.  I like having the payment confirmation receipt.

qbteachmt
Level 15

"Their funds are in their business account."

Teach your client how to do this correctly. Tell them a direct pipeline from the business account to a personal expense is not advised, and I like to use the word, "Discoverable" as in, you are really flagging something for the IRS to consider might need further examination, because, Hey, if you are willing to this for Taxes, think of what else you might have done with that business money that went to personal. It's called commingling. The IRS loves to discover it.

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