Post Ch 7 - Corporate Tax liability

[petrified]

Hi Everyone, haven't been here in ages!

As a recap to my situation, I had a business (C-Corp) that failed. I ended up having to file Chapter 7 personal bk because of all the business debt that was personally guaranteed.

I also listed county business personal property taxes and state Corporate Tax debts.

The State corporate tax was really not owed, it was a mistake on their part (they actually owed my company a refund and they acknowledged this in a phone call, but that was during the time that my whole life turned upside down and I didn't get a chance to clear it up). Before I filed, the state had sent the supposed debt to collections.

I filed BK in 2006 it went through and I was discharged late 2006.

State collections agency called me again and I advised about the BK. No more calls (this was 2006).

County stopped sending me bills.

Now, here we are in Dec 2008 and I have received a notice from the State indicating amount of the tax owed and threatening legal action.

County has now been sending bills but now addressed to the Company (that is no longer in business since 2005).

Did my personal bankruptcy take care of these bills or not? is the State in violation of the bankruptcy rules?

Thanks for any insight. I would hate to have to hire an attorney as I have NO MONEY at all so if I can clear it up with a phone call indicating BK or a quick letter, that would be best.

P

[HHM]

Well, since you filed BK, and you had C-Corp, the C-Corp (even though it is dead) is still liable for the tax. The real question is whether you are personally liable for the tax.

[petrified]

Well, since you filed BK, and you had C-Corp, the C-Corp (even though it is dead) is still liable for the tax. The real question is whether you are personally liable for the tax.

Precisely. My BK attorney had indicated at the time that by including it in personal BK, I would not be liable. I just don't understand why they are now coming after me.....

Not to mention that they actually owe the corporation a refund! They misread the lines on the return and assessed the Tax liability without considering the deductions from the liability and thus an amount on the refund line..... and they even acknowledged that it was a common mistake!

<sigh>

I just feel like this nightmare will never ever end and I wish I had never started a business....

P

[StartingOver08]

Did you actually wrap up the C-corp's business with a final return or did you just stop doing business in the C-Corp name?

To formally close the C-corp you need to file a form 966, IMO.

see link: http://www.irs.gov/pub/irs-pdf/f966.pdf

You probably just filed personal BK and not corp BK so you may need to just wrap up these details to finalize this entity. Maybe your BK attorney will still answer your question without charging you additional fees. Or check with your CPA, if you have one.