Many small business operators may choose to register their business as an LLC. Forming a limited liability company gives them certain protections.
However, small business operators may not know that having an LLC does not give them protection against the IRS. If there’s a levy against you, your LLC can be seized and sold, in order to pay what you owe.
Can the IRS seize my one person business?
The IRS can seize your business if you are the only owner. Having an LLC that is basically a single person entity, does not give you any protection against such an action. If you have taxes that are unpaid, the IRS can take your small business and sell it in order to get cash to fulfill your obligations.
An attorney from Hillhursttaxgroup.com can help in this situation. As soon as you receive an IRS bill that notifies you of an upcoming levy, you should contact a tax attorney, if you haven’t done so already.
Is seizing your small business the only action that the IRS can take?
The IRS can take a number of actions in order to gain cash to cover your tax obligations. Seizing your small business is not usually their first step.
In most cases, they will take money from your accounts first. This is the easiest step to take because it doesn’t involve the delays that are associated with selling an asset such as a business.
However, if you don’t have enough money in your bank accounts to fulfill your obligations, they will move to other physical assets. This includes cars, motorbikes or trucks that you may own. Even boats that are used for activities that are associated with your business or personal life can be seized and sold.
How can a tax attorney help you?
A tax attorney can help you in several ways which will relieve the pressure on you. For example, a tax attorney can help you to contact the IRS immediately and show that the levy is causing economic hardship.
Your attorney can help you to ask the IRS to release the levy. If your attorney makes a good case, the IRS will often do so. However, there may be times that entrepreneurs make this request of the IRS without help from an experienced lawyer on the case. They might not show all the relevant facts. Even in this situation, a lawyer can help you to appeal the decision that was made by the IRS.