My grandfather (80 with kidney failure) owns a business with a physical location. A combination of poor money management and dwindling business has left him with a hefty debt with the IRS. The business is no longer viable and is literally operating day to day and are dangerously close to having to close. The IRS has levied his social security benefits, which is most of his incoming income. The only other asset he owns besides the business location is a vehicle. Is there a way to close the business and get at least some of his social security benefits back? All of his tax filings are current, and all have been paid for several quarters on time.
This appears to be more of a tax question than a business question. Since this is a sole proprietorship only your grandfather (or his agent pursuant to Power of Attorney) can close the business. You also mention a physical location and that will depend on whether he owns that location or is a tenant pursuant to a lease agreement. Once those issues are addressed your grandfather (or his agent) can apply for relief from having his social security benefits garnished, and may also want to take a look at an Offer in Compromise with the IRS since he appears to have very limited assets and very limited income. There is a good description of the Offer in Compromise process and a "calculator" for the Offer on the IRS website. You will need to work with an attorney familiar with the IRS in these two areas.
It is very possible to get a much better solution than having SS of an ill 80 year old levied. No you won't be able to get already levied funds back. Looks like a prime case for an offer in compromise. Might be able to keep the receipts from the liquidated business assets. There are alot of factors to look at.
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