C-corp - Bar

[dsi]

A new client operates a Bar (saloon) via his C-corp. If the corp fails to pay its taxes, can theIRS place a lien on the Liq Lic? I know they can attach the corp's other assests, but what about the Liq Lic? The ABC told me no.

[DaveO]

Do Liqour Licenses have a cash value there?

I would think they could prevent him from transfering it if they wanted to. The IRS did sieze a legal brothel in NV (The Chicken Ranch I think) for non-payment of taxes. What they did with the particular "assets" I don't know.

I would think the ability of the service to sieze his bank accounts and lock his doors would shut him down with or without the ability to take the license.

[jimmcg]

There was a case back in the early ninties that went as far as the US Supreme Court (State of Ohio Dept of Taxation, et al, v Internal Revenue Service) that as I recall concluded that since a state liquor license had beneficial value to the holder and since it could be transferred or sold it constituted property subject to federal tax lien. That is the extent of my recall of this case but I am sure info is available on the internet to anyone with the interest and/or time to research it.
For all practical purposes however the Service can put a Federal lien on whatever they choose whether they have a legal right to or not is generally not one of their considerations. The taxpayer can then litigate at their own time and expense.

[JON]

In a lot of juridictions

the license holder has to prove and excellent bill of health to even have a valid transfer of a license. The individual would be held liable for a lot of the taxes anyway. The corp holds the license if sold and funds not used to retire tax debts or others more liability can fall on the owner and/or whoever benefited from the proceeds.