Federal Withholding Tax and Bankruptcy

[Mike_C]

What is the name of your state? Texas

I have messed up and created a big mess with the lovely IRS, I was not able to pay several years worth of Withholding Taxes - to the tune of about 70k, then add what they want to make off of my mistake and we are over 100k.

If I file for Bankruptcy as a sole proprietor, will this relieve this debt? They have levied my accounts several times and I just found out that 2 federal tax liens have been placed on me as well.

I am working with the IRS to resolve the balance, but that is a large amount and need to consider other options.

any advise?

Mike

 

[mtpockets]

Not dischargeable

Trust fund liabilities (taxes withheld from employees) are not dischargeable in bankruptcy. Payroll taxes levied on employers are dischargeable if enough time has elapsed. I hope you are using an attorney for your bankruptcy filing.