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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.
Wiki User
∙ 14y ago
Wiki User
∙ 11y agoAlmost never. Sales taxes and payroll taxes are not taxes on the company, but are monies held in trust by the company for the government or the customer/employee, who actually pays it. These trust fund monies the oficers of the company are personally liable for, and virtually all governments will act fairly quickly in the BK process, to assure they have been paid over in full, or they will attach the homes and assets of the officers...and really almost anyone they can find...to get payment.
It is nothing to mess around with. Criminal charges for those who allowed their loss are also possible, as not turning them over and using them for other reasons is considered theft of funds that are, and never were, the companies.
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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.
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.
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.
What are the process for sales tax for business?
Sales tax is different depending on the state you live in. For instance its 6% in WV, 7% in PA, etc. It's not automatically added, the business has to have the computer automatically calculate the tax for the business then pay the government that tax when tax season happens.
How much does Florida charge for their business sales tax?
Business sales tax is a standard rate around the state of Florida. The current ongoing rate is set at 6%
