S Corp owes state taxes with no assets to pay them.

[msullivan@pathi]

What is the name of your state? Wisconsin
I owned a small cafe which I kept open long past the time I should have walked away. I did walk away, and owe state sales taxes. The corp has no assets with which to either file bankruptcy, nor to pay the taxes. Will filing for bankruptcy pierce the corporate shell if I use my personal income to pay the attorney and fees?

 

[tranquility]

While sales taxes tend to not follow the "responsible party" like trust-fund taxes, the only answer is that it depends. If you were paying yourself a salary or distributions or gaining benefit (driving a car leased by the s-corp), while the sales taxes were sitting there, they might be able to pierce if you were in control of the corp. Talk to your attorney and let him know all the facts. Let him make a determination.