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?

UPDATED: Nov 16, 2011

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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


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 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.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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