Skip to content

IRS Levy for Individual-No Personal Account

Answered by: 

Question: 
We received an IRS levy for an individual. We have no personal account, but there is an account where the individual is the sole owner on a business account and incorporated. Does the levy effect this account? And do the new Beneficial Ownership regulations impact this at all? This individual is really using this as a personal account and even deposits Social Security checks into it.
Answer: 

An individual is one person under the law. A corporation or an LLC (even a single member LLC) is a different person. Even if the beneficial ownership regulation has infused your bank with knowledge that an individual is the sole shareholder or member, you would not process an IRS levy in the name and SSN of the individual against the legal entity.

You have added information that indicates the legal entity may be a sham. For your own purposes, you need to begin unwinding the relationship; e.g. tell the customer the legal entity must close the account.

First published on 11/04/2018

Filed under: 
Filed under operations as: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics