Can a business file bankruptcy for taxes owed?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Can a business file bankruptcy for taxes owed?

Asked on May 19, 2014 under Bankruptcy Law, Texas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Most tax liability, especially taxes owed the federal government, is *not* dischargeable in bankrupty; not surprisingly, the government does not want to let people use a benefit the government gives them (the right to file bankruptcy) to get out of paying money to the government. It is therefore very unlikely that filing bankrupty over taxes will help.

Also, bear in mind that even if the business is a LLC or corporation, certain types of tax liabiltiy (such as for payroll taxes or sales tax) are "fiduciary" taxes, which means that the responsible owners or executives can be held personally liable for them.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption