What can I do to prevent a levy on my personal bank account for supposed sales tax due on a business that was dissolved over 2 years ago?
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What can I do to prevent a levy on my personal bank account for supposed sales tax due on a business that was dissolved over 2 years ago?
We also recently declared personal bankruptcy so we don’t have much left in the amount of cash or property.
Asked on April 22, 2011 under Bankruptcy Law, California
Answers:
MD, Member, California Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
Unfortunately, in bankruptcy, most agency and administrative fines, penalties, and state and federal taxes are not dischargeable. So, you may not be able to prevent a levy or garnishment on any or from any of your personal assets. What you can do is review what you owe and to whom, and consider working out a payment plan to repay the taxes owed. If you feel you do not owe simply because your business was dissolved two years prior, please understand that most agencies have several years to collect on back taxes owed, as well as any associated fines. Your best bet is if you have an existing income, consider making periodic payments through a periodic payment plan. If you feel you can ride it out, understand the garnishment can happen at any time and you may not realize it until you actually have it garnished or your assets frozen.
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