General Question

AshlynM's avatar

Can the IRS levy a bank account that is not yours but you are an authorized signer?

Asked by AshlynM (6556 points ) May 21st, 2014

Say I open a new bank account myself but put my friend’s name as authorized signer or as a person who can have access to my account but they are not an actual owner of the of the bank account.. Can the IRS stll levy my account because their name is associated with it? Even though it’s my account?

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5 Answers

tedibear's avatar

As long as they are not an account owner, the IRS shouldn’t be able to touch that money. However, I would run that by a lawyer first.

Crazydawg's avatar

From what I have read that if this other signer deposits personal funds into said account then the IRS will seek action to recover these funds if this other person is involved in a tax liability issue. Monies that are not directly associated with this other signer should be safe from actions by the IRS.

Adirondackwannabe's avatar

It depends if both SSN’s are on the account. The IRS is amazing in their ability to run down SSNs.

Dan_Lyons's avatar

When you add other signatories to your account, don’t you actually make that a joint account?
If funds are commingled in said account and the IRS is after either of you, at the very least they can freeze that account before simply deducting what they want from it.

Check with your bank and a tax attorney.

Darth_Algar's avatar

If it’s something like an account where a person, acting as a caretaker or power-or-attorney kind of thing, can make withdrawals and deposits on behalf on another person then I would think not. But if it’s just you and a spouse/partner/friend opening a joint account then I would imagine the IRS can place a levy against it. I’d definitely consult a tax expert first is this in a real concern of yours.

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