Levy and Distraint

ID:
Office:
UILC:
CCA_2009071712262240
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6331.00-00
Number: 200946050
Release Date: 11/13/2009
From: ---
Sent: Friday, July 17, 2009 12:26:23 PM
To: ---
Cc: ---
Subject: LLC Liability, ---
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This is to advise you that I’ve reviewed your memo to the --- concerning the personal tax liability of a owner of an LLC. I concur with your conclusion that the sole owner cannot be held personally liable for the employment taxes incurred by the LLC while it was a multi-member LLC treated as a partnership for federal tax purposes.
In particular, I agree that this question of liability is governed by Treas. Reg. 301.7701-2(c)(iii).
Under that regulation, a single-member LLC is not disregarded for the purposes of federal tax liabilities incurred during taxable periods in which the entity was not disregarded. Although the LLC here is currently a disregarded entity, it was not at the time the employment tax liabilities were incurred.
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If you have any questions about my comments or edits please give me a call.
Thanks--
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ATTACHMENT: [redacted]