• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Federal Withholding Tax and Bankruptcy

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

Mike_C

Junior Member
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

Member
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.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
Top