Can you get out of paying the IRS if you file bankruptsy on your Corperation.
2007-11-05 04:05:44 · 9 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Yes, they still have to pay taxes. They have changed the laws. It used to be that all your debts were cancelled. Nowadays thats not the case.
2007-11-05 04:09:41 · answer #1 · answered by Anonymous · 0⤊ 0⤋
If a corporation goes bankrupt and has no assets it won't have to pay them because there is nothing to pay them with. The responsible persons in the corporation can be held liable for a penalty equal to the unpaid federal withholding taxes, but not employer taxes, penalties or interest. In my state, California, they can be held liable for all the state employment and sales taxes including penalties and interest.
2007-11-05 05:30:12 · answer #2 · answered by Anonymous · 0⤊ 0⤋
IRS and state taxes are still owed regardless of bankruptcy filing. This debt doesn't go away unless you negotiate a settlement with them.
2007-11-05 05:06:54 · answer #3 · answered by itsjustme 2 · 0⤊ 0⤋
The officers and principal employees can be held personally liable for the tax debts of the defunct corporation.
2007-11-05 04:25:06 · answer #4 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Even though the Corporation may not have any money, the officers of the company can still be pursued for taxes.
2007-11-05 04:14:35 · answer #5 · answered by Wayne Z 7 · 0⤊ 0⤋
To the best of my knowledge, bankruptcy does not wipe out certain debts, and taxes owed is one of them... the attorney handling the bankruptcy will be in a better position to advise on this.
2007-11-05 04:10:24 · answer #6 · answered by Rafael P 4 · 0⤊ 0⤋
If the corporation made a profit, taxes are still due even if the corp files bankrupcy.
2007-11-05 07:00:43 · answer #7 · answered by Judy 7 · 0⤊ 0⤋
For earnings tax you probable does no longer pass to penal complex. yet with the two sales tax and payroll tax, in case you accumulated/withheld them and did no longer remit them, you certainly stole funds that replaced into in no way yours, and belonged to the government.
2016-10-15 03:01:12 · answer #8 · answered by ? 4 · 0⤊ 0⤋
i think yes.. but make sure to file a bankruptcy...
2007-11-05 04:11:45 · answer #9 · answered by ♥♥♥ånnę™♥♥♥ 2 · 0⤊ 0⤋