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My boss owes about $50,000 in back taxes, in which he has set up a payment plan with the IRS.

He wants to Start a NEW L.L.C.

My question: Can and will the IRS seize money from the new business and/or put a lien on property from his existing debt or is the new L.L.C. safe?

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    I'm voting to close this question as off-topic because it's not a personal finance question, but a tax law question about companies. – RonJohn Jan 25 '18 at 23:21
  • Suggest that he talk to a tax-lawyer. – Ahmed Masud Jan 26 '18 at 0:11
  • generally LLCs are seen as "pass through" and (to summarize) offer zero protection to speak of. – Fattie Jan 26 '18 at 1:06
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    @RonJohn This is a personal finance question. “The boss” is a person that owes back taxes. The company in question is simply an asset that the boss owns. – Ben Miller Jan 26 '18 at 11:23
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    @BenMiller Agreed - this is a personal finance question [can this one easy trick allow me to evade taxes?] with a clean answer [No.] – Grade 'Eh' Bacon Jan 26 '18 at 19:18
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Yes.

If the boss owes the money and the boss owns the LLC, the LLC is part of the boss' assets. They can come after it. LLC protection work up the chain, not down it.

Also, this is irrelevant if the boss has a payment plan. They won't go after any other assets as long as he keeps to the payment plan.

If he is doing this and planning to default on the payment plan then this method of defrauding the IRS will not work.

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Technically, they probably wouldn't take the money from the LLC. They would take the LLC itself. Any ownership interest that he has in the LLC is an asset, and subject to seizure. If you're planning on being a partner with part ownership of the LLC, and are wondering whether your ownership interest is safe, that is a separate question. It probably is, but not definitely; you'll have to be careful that your ownership interests are clearly separate, and even then the IRS may put restrictions on how funds are used to keep your boss from absconding with them. If things don't go well between your boss and the IRS, you may find yourself with the IRS as a partner once they claim your boss' share.

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