Friday, April 30, 2010

Can my bank account be garnished if my spouse is sole proprietor of his business and he owes back taxes?

The taxes from your spouse's sole proprietorship are part of your joint return. A sole proprietorship is not separated from the taxpayer, which in this case is you and your spouse.





You and your spouse are equally responsible for those taxes. The IRS will recover those taxes from any assets you or your spouse have.Can my bank account be garnished if my spouse is sole proprietor of his business and he owes back taxes?
Your separate property cannot be levied upon to satisfy your spouse's separate debt. If you owe income tax on a joint return based on profits from the spouse's business, you and your assets can be levied upon. IRS can levy on bank accounts and wages without a court order. A levy on other assets may require an order rubber-stamped by a judge. In a community property state separate debts can be collected by levy on community property.Can my bank account be garnished if my spouse is sole proprietor of his business and he owes back taxes?
If you filed a joint return you are BOTH liable for the full amount of the tax debt regardless of whose bank accounts are involved.





BTW, the IRS doesn't ';garnish'; bank accounts. Only wages can be garnished and only with a court order. The IRS doesn't need a court order to seize your bank or other financial accounts. The present your bank with a seizure order and the money is turned over by your bank.
yes whether or not you are joint owners.. once you are married what is his is yours also.. funny that way ain`t it?
Only if it's a joint account, I think.

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