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Can the IRS get assets inside my LLC or LP?

Unless the IRS gets a fraudulent transfer ruling or pierces the veil of your LLC or LP, the answer is no.

A properly structured and operated LP or LLC will not be subject to veil-piercing and will be reinforced against a fraudulent transfer ruling; especially if it’s set up before the IRS comes knocking.

The IRS (shockingly!) admits this is true.  A 1999 internal legal memorandum discusses an actual court case being litigated by an IRS attorney, and gives a detailed analysis of when an LLC’s veil may be pierced, or when assets transferred to the LLC may be taken back out due to their transfer being fraudulent.

In light of case law that came out after this memorandum, it’s best to use a multi-member LLC instead of a single member LLC.

Our Company

PF Shield uses the most advanced planning methods available anywhere, while at the same time remaining cost-effective. We custom tailor plans to the client’s needs and goals. We are familiar with and use dozens of the most advanced strategies available anywhere. PF Shield offers a free initial consultation. Subsequently, you may opt to purchase a full consultation with a customized, in-depth asset protection and estate planning report and plan design for only $350. Contact us now and start protecting your assets.

Our Book

Limited Time Only: Contact Us to Receive a Complementary E-book Copy of Our Book----- - Our comprehensive in-depth asset protection book has hit the shelves. New book: Asset Protection In Financially Unsafe Times is now available for purchase at Amazon. The book is co-authored by Dr. Arnold S. Goldstein PhD, JD, LLM, MBA and W. Ryan Fowler, PF Shield's Chief Consultant.

Latest News

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