2007-11-01 14:04:00 · 6 answers · asked by mwill467 1 in Business & Finance ➔ Taxes ➔ United States
Don't pay any attension to the other posters, the only one who has any idea of what he is talking about is wartz.
Most taxes can be discharged with bankruptcy as long as they are not trust fund taxes (940 &941) and are old enough (2003 and older). It dosne't matter if you use chapter 7 or 13. I am not familuar with the corporate chapters. The reason you can't discharge trust fund taxes is you were suposed to withhold these from your employees pay and forward them to the government. As a general rule the IRS is much more lienent with individual taxes than they are with business taxes.
You should consult a lawyer for more information about your paticular situation. IRS will not answer you questions because laws vary from state to state.
2007-11-01 14:38:38 · answer #1 · answered by Charlie & Angie G 4 · 0⤊ 0⤋
if the business is incorporated and the liability is with the business and no individual, the debt doesn't get discharged. If an individual needs to file, back taxes are typically not dischargeable. Certain types of taxes are dischargeable after 3 year, but business taxes most likely aren't.
2007-11-02 00:24:36 · answer #2 · answered by Lesley 5 · 0⤊ 0⤋
It depends upon how old the tax debt is and what the taxes were for. Generally, income tax debts more than 3 tax years old (that would be tax year 2003 and earlier) MIGHT be includable in bankruptcy. However if the debt is for public trust fund taxes -- payroll taxes withheld from employee's pay -- they are NEVER dischargeable in bankruptcy.
2007-11-01 21:34:00 · answer #3 · answered by Bostonian In MO 7 · 1⤊ 1⤋
There is no such thing as bankruptcy on taxes. A person or business is taxed bsed on a transaction involving receipt of cash or on an income. If ever you go bankrupt, you should be showing loses which are not subject to tax
2007-11-01 21:19:31 · answer #4 · answered by Precious Stone 1 · 0⤊ 2⤋
Probably not. Most income taxes that became due and owing over three years ago, meaning generally 2003 and prior, can be discharged but not newer taxes and not withholding taxes.
2007-11-01 21:18:45 · answer #5 · answered by Anonymous · 2⤊ 0⤋
My understanding is that bankruptcy does not do away with tax debt. So once your bankruptcy was final, you would still owe the taxes.
2007-11-01 21:18:03 · answer #6 · answered by Nancy G 4 · 0⤊ 2⤋