Chapter 7 & Back Sales Tax owed

[Needing Help]

Quick question...

We are filing a 7 because of a failed business. Actual Total back sales tax due to the state- $630. The current "Balance" (because of late fees & Penalties) - $3,200.

I know taxes are not discharagable, but will we be responsible for all the interest and penalties as well? Or just the TAX owed?

Thank you.

[biotechsolution]

if the taxes are over 3 years old the interest isn't dischargeable but you can make a case that the penalties are dischargeable because they are a 'punitive' measure.

[Needing Help]

What if the taxes are just 1 year old?

[biotechsolution]

then nothing is dischargeable. everything must be paid, tax, penalties and interest.