Q: Can the IRS collect LLC penalty and interest only, from it's individual members?
I filed a tax return late but did not owe any LLC taxes (in 2014, but I just found out about the charges about a month ago).
The IRS hit the LLC with $2298.46 in penalties and interest, not for owing any taxes.
The LLC was dissolved about 9 years ago, I believe. My question is, can the IRS come after me and/or my husband (my business partner), for that debt?
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A:
When it comes to LLCs, the IRS typically views the entity as separate from its members, meaning the company itself is responsible for its taxes, penalties, and interest. However, the way an LLC is structured can influence how the IRS pursues outstanding liabilities. For an LLC treated as a partnership or disregarded entity, the IRS might seek to collect from individual members if the entity cannot satisfy the debt, especially if there are outstanding personal guarantees or if the IRS can prove that tax reporting responsibilities were not handled correctly by the members.
Since your LLC was dissolved about 9 years ago, the situation becomes more nuanced. Generally, the liability for penalties and interest would remain with the LLC. However, if there were any lapses in adhering to the formal dissolution process or if state laws regarding the winding up of business obligations were not followed, there could be potential personal liability.
To navigate this situation, it would be wise to consult with a tax professional or legal advisor who has experience with business tax law and the dissolution of LLCs. They can provide guidance specific to your situation, including the potential for personal liability for the LLC's debts and how to address any claims made by the IRS. Understanding your rights and the proper steps to take can help protect your personal assets and resolve any outstanding issues with the IRS.
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