Can the IRS take mine and my husband’s personal savings to pay his family’s business taxes if my name is not associated with the company?

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Can the IRS take mine and my husband’s personal savings to pay his family’s business taxes if my name is not associated with the company?

My husband recently resigned from a family business. The business owes back taxes and the IRS is trying to collect. Can they take our savings? My name is on nothing that has to do with the business? Can that hold our personal tax refund?

Asked on November 16, 2011 under Bankruptcy Law, Maryland

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

To answer your question, is the buiness that owes back taxes a corporation or a limited liability company? Or is the business that owes the back taxes really a business that your husband ran under a fictitious business name?

If the business is run under a fictitious business name and your husband had an ownership interest in the business, then he and you could be responsible for the back taxes. If he was solely an employee, you would not be responsible for the tax issue of the business.

If the business is a corporation or a limited liability company, the business owes the back taxes. However, officers and actual owners of the limited liability company or  S corporations owing back taxes can under certain circumstances be liable for moneys owed for taxes individually as well as their spouses.

I suggest that you and your husband consult with a tax attorney or an accountant about your situation.

 


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