Friday, October 7, 2011
How to obtain a secret bank account when all else fails
The following quote is from Elsy in New York. She sent it to me as a post to one of my website pages. This was such an ingenious solution that I am passing it on to you.
"I purchased Invisible Money when it first came out. A friend was in trouble with the IRS and could not deposit his money in his own bank until he could work out a payment plan with the IRS.
"In Invisible Money you discuss older bank accounts. We brainstormed and came up with several ways to acquire an old bank account. My friend started looking for businesses for sale at dirt cheap prices. He really did not want the business; he wanted the business bank account. He found a one-man lawn service business looking to sell his client list.
"He purchased the business (client list) for approximately $3000. Included in the purchase was the business bank account which was opened in 1966. No social security number attached. Just a tax ID number
"Then he sold the business client list for his purchased price minus the bank accounts."
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With the advent of the Patriot Act, it might be impossible to do this. With every business account these days, you must provide your name, SSN and other info for all authorized signers on the account.
ReplyDeleteI hope you are doing well, Mr. Luna. You are always in my thoughts, keep up the good work. :)
ReplyDeleteWe recently had to change signatories on a club's bank account. Each and every person will sign the checks had to present 2 forms of ID and be run thru the credit reporting system. They did indeed want your SS#. I doubt that simply buying an old business, like in the post, would suffice nowadays with all the "Know Your Customer" regulations the banks have.
ReplyDeleteA word of caution to anyone thinking of doing this:
ReplyDeleteI managed a small business (LLC) that was later sold, and the owners kept the bank accounts open to pay off some business-related bills.
At the advice of their lawyer, they emptied and closed the account a few months later. Disgruntled former employees or clients may come around months (possibly even years) after the sale of a business and file a frivolous lawsuit. They are still paying off an expense, but are doing so from another account that is not tied to the LLC.
Anyone who chooses to go this route should seriously consider keeping only a "judgment proof" amount of money in the account, and of course should keep all other assets (i.e. vehicles) titled under separate business entities.
Federal Register: May 9, 2003, Vol. 68, No. 90, Rules and Regulations [Page 25089-25113] "Accordingly, the proposed provision defining 'customer' to include a signatory on an account is deleted."
ReplyDeleteHad an account with a particular bank for about 20 years. They have the original information upon it's opening and the bank has changed hands many times. The original information is still the original information, and when they ask for new information, I politely refuse-- and go to a different branch. Of course this is when I needed services that would have to be provided by going into a branch, otherwise, all is well. -JC
ReplyDelete