Does IRS have to notify me before garnishing my personal wages for taxes that My fomer LLP owes IRS?

Question

I was part in an LLP partnership that owes the IRS taxes. The partnership has been dissolved but still owes the IRS taxes. The IRS has notified the partnership of its intention to take steps to forcibly collect the partnership taxes.

Doe the IRS have to notify me of its intent to either put a lien on my personal property or its intent to try to garnish my personal wages prior to doing so?

or is the IRS's notice to my former company of the IRS' possible actions against the company (LLP) sufficient legal notice to me as an individual of any actions that the IRS can take against me individuallY?

I don't want to get a surprise garnishment of my wages or a surpise lean on my personal property for taxes that my former partnership owes the IRS.

Thank you for your help in this matter.

Answer 1

You MAY NOT be liable for the tax, depending on the nature of your participation and also on whether the form 1065 (Partnership tax return) was correctly prepared. I urge you to see a tax professional. You say that it is a partnership, but LLC's electing to be taxed as a partnership DO NOT PAY INCOME TAX!!!!! Unless the liability is for fuel tax or excise tax, etc something is mighty fishy.

Furthermore, depending on your relationship to the entity, notice from IRS to them might NOT be sufficient notice under the law. Another reason to get a competent tax pro to look at the particular facts & circumstances in your case

However, that you might not be liable will not stop IRS from taking if they think you are liable. In a situation where more than 1 person is liable, it is a "joint & several liability", meaning that they'll get it from whoever they can & it will be up to you to get your share back from the others (not likely if IRS can't get it from them)

Furthermore it will be an expensive uphill battle to get your own money back (and you'll pay for it alone).

Right now, I'll bet you're not getting much sleep. If there is as much at stake as it seems from what you've said & not said, I cannot more strongly recommend you contact your state's Enrolled Agent or CPA society for a referral to a competent professional. It will cost a few hundred bucks, but even if it turns out that you are liable they can help with damage control & eliminate the surprise or at least postpone it while getting the facts.

Good luck

Hank Roitman, EA
Sacramento, CA

Answer 2

You have received notification now the next step, if the debt is not paid, would be for the IRS to determine who has what assets and to move on those assets. A study job is a pretty easy asset to collect from . If I were advising you I would make some collection arrangements with the IRS. It of course would be best for all of the partners to make the approach to the IRS.

Answer 3

You've already been notified. Each of the partners is fully liable for the total tax debt.

You'd best each contact the IRS and work out payment plans and stick with them.

Answer 4

NO!! Contact them Now!!