I am planning on forming a corporation my personal credit is jacked up and so is my check systems. I have looked at some the bank account aps and the ask for my personal social security info even for corporations. Now my plan is to have a relative be the account signer but this person I am thinking owes money to the irs. so my question is if he on the account(corporate checking) can the irs go after the account.
2007-05-12 17:48:53 · 7 answers · asked by david_r80 2 in Business & Finance ➔ Taxes ➔ United States
Since any corporation you would form has no credit history you'll have to be a personal guarantor for quite a while. That's why they as for your SSN. They probably won't be interested in anyone with a tax debt over their heads so they may not accept your relative as guarantor for the account.
If the person who signs the checks for the corporation is a corporate office or shareholder, they IRS can go after any of their assets to settle the debt with the IRS. That could include part of your corporation.
Unless you're actually in business, forming a corporation is only going to cost you money and do nothing to ease your banking or credit issues. And if the IRS suspects a tax dodge of any type, all bets are off and everything you own is fair game.
2007-05-12 18:15:06 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋
The corporation will have its own federal EIN number (much like your S.S. #, expect it for the corporation)and most banks will not open a corporation account without:
The federal EIN
A copy of corporation charter
A copy of corporation articles and by-laws
A copy of the minutes authorizing you or someone else to establish and sign checks.
Your S.S. #
Your credit is rarely a fact in setting up a corp. acct., however you will be personally responsible for any overdrafts.
If you currently owe money to the IRS and have not set up a payment plan, they will aggressively pursue you, attach all accounts and property.
If you do not owe the IRS at this time, they normally will not go after the corporation assets as long as you do not intermingle your personal funds with the corporation.
2007-05-13 08:57:53 · answer #2 · answered by oldcorps1947 6 · 0⤊ 0⤋
The answer is "probably no." There was a recent field service legal memo by an IRS attorney (I beleive he was in Virginia). That memo addressed this very issue, at the request of an IRS collector.
The memo said that a multi-member LLC, a partnership or a C-corp -- and not a single member LLC that is outside of certain states (such as Nevada) is beyond the reach of the IRS.
You should check with a tax attorney to pull the applicable state law to see if this is true for the state in which you intend to create the entity. Better safe than sorry.
Kreig Mitchell
www.irstaxtrouble.com
http://www.irstaxtrouble.com/category/tax-blog/
2007-05-13 15:39:02 · answer #3 · answered by colorado_tax_attorney 1 · 0⤊ 0⤋
Don't put someone on your corporate account who owes money to the IRS. Depending on how much they owe and whether they're working on paying it off, the IRS could end up levying your corporate account.
2007-05-13 03:49:44 · answer #4 · answered by Judy 7 · 0⤊ 0⤋
She continues to pay monthly to prevent any garnishment of the pension. 30 days after the balance is completely paid she can request the one-time IRS forgiveness of the monthly failure-to-pay penalty she is being charged. This is refunded in 30 days. The interest is not refundable so the more she pays and the sooner she pays she minimizes her debt.
2016-05-17 04:53:06 · answer #5 · answered by maxine 4 · 0⤊ 0⤋
probably, it would be up to you to stop it, if thats possible. if you owe enough money to the IRS they can interfere with all your money flow
2007-05-12 18:09:17 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Yes they can if they audit you. They might not catch it this year but they might in the future
2007-05-12 21:18:15 · answer #7 · answered by specialk 1 · 0⤊ 1⤋