Customer selling property, will purchase new property soon. IRS has told her to place proceeds in separate account to avoid taxation - we're unsure what they mean? Any suggestions?

(PS - this sounds like an escrow account to me, but I'm wondering if the title company shouldn't be holding it?)

THanks

Your customer needs a 1031 Exchange Account which is, as you surmise, a fancified escrow account. However, your customer needs to get advice from a CPA or an, attorney, not the IRS and not your bank.

Your bank should not serve as the required "qualified intermediary" unless you've done your own research regarding your responsibilities and charge a significant fee.