Can the IRS freeze my bank account

Can the IRS Freeze a Commercial Bank Account?

My credit score is really bad, it used to be in the high 700's but now it's about as bad as you can imagine. I owe a lot of debt including the IRS, credit cards, banks, loans, etc.

I now have to start a business for a website that I'll be selling goods on.

When the business is in 2 people's name. Mine and a partner who helps.

If the IRS is after me and tries to freeze my assets, can they touch the commercial bank account? My partner is concerned this could happen and will they be unlucky too? But I would rather not write everything in my partner's name.

Pete Becker

Just one tip: the IRS won't freeze your assets if you speak to them in good faith about what you owe. If you ignore them, as many people do, they will get angry.

littleadv

If the business is legally separate and not mixed up, they probably can't. What they can do is take a lien on it (so you can't sell the business) and garnish your income. When the corporate veil is pierced (and it's not that hard to get pierced if you're not careful), you can treat it as if it were your personal asset.

Check with a licensed attorney in your state. I am not a lawyer or a tax advisor.

JAGAnalyst

+1 Legal separation is the central issue. A company is considered a separate "person" for many legal purposes. When you are an owner, you and the company are one and the same. Many special rules for other structures like LLC, S-Corp etc. definitely see a lawyer. The mere fact that this is a "business account" versus a personal checking account is unlikely to help you much. Please note that in addition to "freezing" the account, the IRS can garnish and besiege assets it holds for you.