Sales Tax and Payroll Tax - Please help!

[jenbow]

well.. my attorney is saying no and my accountant is saying yes. I AM SOO CONFUSED. Does anyone have any experience with the following??

1. If our S-corp files chapter 7 can it file against AZ State tax??

2. Can it file against the Employer portion of the payroll tax?

HELP!

[RuthCB]

well.. my attorney is saying no and my accountant is saying yes. I AM SOO CONFUSED. Does anyone have any experience with the following??

1. If our S-corp files chapter 7 can it file against AZ State tax??

2. Can it file against the Employer portion of the payroll tax?

HELP!

My accountant said pay the taxes ( all of them) first.
It may just have been for the headache factor.

I left my S- Corp this week. I haven't filed the dissolution yet... it's not hard, just makes me ill. I don't know what to do with all the junk I have collected over 35 years. LOL

[justbeach03]

I have an s-corp (florida) and in process of dissolving it. Accountant & attorney said to pay ALL sales/employee taxes as they aren't dischargeable and also do a "split year" tax return. Basically filing a tax return to really "close out" business and not have suprises next yr. Figuring what to do with all the biz assets is stressful in itself. Good luck!

[HHM]

I have an s-corp (florida) and in process of dissolving it. Accountant & attorney said to pay ALL sales/employee taxes as they aren't dischargeable and also do a "split year" tax return. Basically filing a tax return to really "close out" business and not have suprises next yr. Figuring what to do with all the biz assets is stressful in itself. Good luck!

That is the correct response.

There is probably NO REASON for the s-corp to file a business chapter 7. Simply dissolve it and liquidate it. A corporation, when it files BK, DOES NOT DISCHARGE DEBT. The corporation merely dissolves and the BK trustee liquidates it.

The reason you MUST (or have the corp. pay through the liquidation) the Sales Tax and Employee tax is that you can/will be held personally liable for that tax.