We have received a letter stating that the IRS is going to levie or seize property. The property is owned by the sole member of an scorp that is no longer operating. This property is the his home residence.the business was operated out of this residence. The taxes in question are just the corporations yearly income tax and are not payroll related.
The stakes on this are simply too high to get by on a response you get for free online. Generally speaking, the assets of a shareholder cannot be seized to satisfy the tax debts of the corporation (i.e., excluding so-called trust fund taxes), provided that all of the corporate formalities were properly followed and the shareholder did not withdraw property from the corporation without first applying that property to the corporation's tax debts.
That is a brief summary of the rule; however, there aren't enough facts to determine if the rule applies in this case or not. The matter sounds complicated and so I would recommend you consult with a tax attorney promptly.
My answer does not constitute legal advice and may not be relied upon by anyone for any purpose and does not constitute an attorney/client relationship or an offer to form such a relationship. This disclaimer is intended to be fully compliant with the requirements of Treasury Department Circular 230 and the terms thereof are fully incorporated by reference.
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