Ask a Lawyer - Archive

If I am a part owner of 5% with a corporate business and the rest which is 95% is own by the primary owner and the business is having problems with paying taxes with the IRS because of the economy can the IRS take my personal money even though it is under my name and my spouse.

In a perfect world, an ownership interest in a corporation that is properly formed and maintained would probably not, in and of itself, be sufficient to hold someone personally liable for unpaid corporate taxes. But if an owner is also a director or officer of the corporation, or otherwise an agent of the company who has responsibility for paying certain taxes, then it is possible that he or she could be held personally liable for unpaid taxes, or penalties for failing to pay them. An example where problems often arise in this regard is with respect to failing to make payroll tax payment. If a corporation fails to pay in withholdings from its employees, or the employer's portion of social security, etc., the IRS can come after directors, officers and/or other agents who are responsible for paying in such amounts and filing necessary returns. In determining whether or not you have such responsibility, being a signatory on company checking accounts is one of the first things the IRS is going to consider. It really may not matter if you are a 5% owner or a 95% owner. The IRS may very well come after everyone. You should go see a lawyer about this right away.