State Sales Tax Levy on LLC Account w/ EIN

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Question:

Can a State Sales Tax Levy be executed on a LLC titled bank account with an EIN number? Also, does anyone investigate whether the funds in the account are SS Benefits?

Answer:

The sales tax levy would not be subject to the Treasury Department's Garnishment of Accounts Containing Federal Benefit Payments regulation, because it doesn't fit the definition of "garnishment order" in the regulation.

If you have a name match between the levy and the LLC account in your records, but the EINs don't match, contact the state tax agency for clarification. The LLC may have registered an EIN with the state sales tax office and a member's SSN with you.

First published on BankersOnline.com 6/20/11