Holding Funds on an IOLTA Account
Answer by John Burnett, BOL Guru Guru Bio
Question: We just received an IRS levy for a business customer. The customer does not have the funds available in one account, however he does have available funds in an IOLTA account. Can we hold funds on an IOLTA account?
Answer: No, the IOLTA account does not (or at least should not) include funds that belong to your business customer. The funds belong to your customer's clients, and can't be levied for tax obligations of your customer.
BankersOnline is a free service made possible by the generous support of our advertisers and sponsors. Advertisers and sponsors are not responsible for site content. Please help us keep BankersOnline FREE to all banking professionals. Support our advertisers and sponsors by clicking through to learn more about their products and services.
Print Friendly!
Email This Article!
Discuss NOW!
