DBA Account Levy

Question:

The bank has received a levy for a taxpayer. The name on the levy is styled as: John Doe DBA Doe's Auto Sales. The tax id number on the levy is an EIN, not John's SSN. We do not have any accounts for the business, but we do for the owner, in his social security number. Does the levy on the business extend to his personal account since it is a DBA?

Answer:

The indebtedness is that of the individual and the levy attaches to funds belonging to the individual. If the business is a sole proprietorship, it attaches without regard to whether the account carries an EIN or SSN. If the business is an entity, the levy does not attach; the funds belong to the entity, not the individual.

DBA is not a synonym for sole proprietorship. The term means "doing business as" i.e., the individual or entity is doing business under an assumed name. The customer can be a corporation, partnership, LLC, or sole proprietorship and still be a DBA.

First published on BankersOnline.com 1/04/10