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IRS Levy for Individual-No Personal Account

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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.

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

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