Welcome back! Ask questions, get answers, and join our large community of tax professionals.
- Topics
- Training
- Community
- Product Help
- Industry Discussions
- User Groups
- Discover
- Resources
Join us today for the 2-day virtual tax conference packed with vital insights to thrive in the 2024 tax season. Click here to register.
Join us today for the 2-day virtual tax conference packed with vital insights to thrive in the 2024 tax season. Click here to register.
Turn on suggestions
Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
Showing results for
- Intuit Accountants Community
- :
- Industry Discussions
- :
- Tax Talk
- :
- Re: IRS Levy
IRS Levy
Options
- Mark Topic as New
- Mark Topic as Read
- Float this Topic for Current User
- Bookmark
- Subscribe
- Printer Friendly Page
cpa72
Level 3
10-24-2023
02:54 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Client owes the IRS for the trust fund portion of company (out of business) tax debt including civil penalties. The IRS has issued a levy notice to a single member llc (owned by the taxpayer) to collect monies from it to pay the individual's liability.
Can the IRS do this? Levy against newco owned 100% by taxpayer to recover trust fund portion of taxes due from taxpayer?
2 Comments 2
IRonMaN
Level 15
10-24-2023
03:14 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
They did it, so it kinda sounds like they can.
A solely owned LLC is still the taxpayer - kind of a left pocket right pocket thing - it's still his pockets.
Slava Ukraini!
BobKamman
Level 15
10-25-2023
04:57 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Is the LLC paying wages to the taxpayer? If so, then it's a wage garnishment. Otherwise, some of this depends on state law. IRS may not be able to force the LLC to make a distribution, but it may be able to seize the entire LLC and anything it owns, including its bank account.
An ounce of prevention (negotiate with IRS; request a Collection Due Process hearing) would have been better than the pounding headache now created.
