Even though a one-member limited liability company (LLC) is treated as a “disregarded entity” for income-tax purposes, under state law the LLC is still a separate property owner.
Thus, the IRS acknowledges that it cannot levy on the LLC’s property to satisfy the tax bill of the LLC’s only member. The IRS can, however, levy on income paid from the LLC to its member.
For more information, contact Howard J. Kass, CPA, Partner, at hkass@zinnerco.com.
