0
Absolutely not.
Even in the BKs with the highest powered of lawyers...and Corporations....the last things done before filing BK is pay the sales and withholding taxes!
In most all states or taxing jurisdictions, (with California being one large notable exception), these are not taxes on "you", but money the business collects from others (customers or employees) on behalf of the State. They are trust funds....they not only won't ever be discharged....they carry direct, pierce any corporate shield, to the officers and involved parties, responsibility. Better take care of them one way or another ASAP. In the few places they may be legally considered the responsibility of the vendor, they may be discharged in the BK, (as situational as anything else), and would be a priorty claim and even allowed an extended bar date for filing a proof of claim.
What else can I help you with?
Will Chapter 7 Bankruptcy discharge New Mexico gross receipts tax?
no
Need the answer why is sales tax a liability to a business?
When a business collects Sales Tax, it owes it to the Sales tax collecting authority. Sales tax that has been collected but not paid to the Sales Tax collecting authority should be carried on the books as a liability.
Is there any way to avoid paying sales tax on a lower priced new vehicle when the old higher priced vehicle was surrendered during bankruptcy?
No. Bankruptcy has no impact on your duty to pay sales tax are purchases made after you file for bankruptcy.
Can you file bankruptcy at all on sales tax?
In general, sales tax debt is not dischargeable in bankruptcy. However, it may depend on specific circumstances, such as the timing of the tax debt and whether it has been assessed. If the sales tax was collected but not paid to the state, it is typically treated as a trust fund obligation, which is not dischargeable. It's essential to consult with a bankruptcy attorney to understand the implications for your specific situation.
Who does a business owe its sales tax to?
The State that they do business in
Is Nebraska sales tax deductible for small business owners?
If you charge tax on the products/services you sell, the customer pays the sales tax and the business passes the tax onto the state/municipality. If the business buys supplies for use in the business (and not for resale) you will pay sales tax and the entire cost of the supplies will be deductible to the business. If you buy the same supplies from out of state and do not pay Nebraska sales tax, you should pay Nebraska use tax and that amount is also deductible to the business. If the business buys supplies that go into making a product for resale, you should not pay sales tax on the purchase of those supplies.
Do you have to charge sales tax on the merchandise you sell in a home business?
Whether you need to collect sales tax depends on where you and your customer is located. If your customers are in the same state as the physical location of your business, they owe sales tax on items. If you are shipping merchandise to a state where your business does not have a location, you will not need to collect sales tax.
Do you get tax refund after bankruptcy discharge?
Depends on if your due a refund to start...and if it was taken from earnings before your filing or after.
Can a business claim bankruptcy on back business taxes?
Yes, a business can seek bankruptcy protection to address back business taxes, but the ability to discharge those tax debts depends on several factors. Generally, income taxes may be discharged if they meet specific criteria, such as being filed on time and being at least three years old. However, payroll taxes and certain other tax obligations are typically non-dischargeable. It's essential for businesses to consult with a bankruptcy attorney to navigate these complexities effectively.
If you file bankruptcy for your business will they take your personal tax refund?
If your business is a separate corporation or entity, no.
What types are items are tax exempt for a business?
Items that a business buys with the intention of reselling them are exempt from sales taxes. However, the business has to charge sales tax when it does resell that item.
How often is sales tax paid?
Periodically in a business depending on the business you are in.
