Are small business sales taxes dischargeable in Chap 7 in GA?

Attorney answers (2)

1. Licensed in GA

   

   Danielle Eliot

   Atlanta Bankruptcy Attorney

   Contributor Level 13

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   Answered April 14, 2010 13:11. Tax debt is not dischargeable in most cases unless. There are circumstances where it would be discharged but most times it is not

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2. Licensed in GA

   

   Jeffrey Kelly

   Dalton Chapter 7 Bankruptcy Attorney

   Contributor Level 12

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   Lawyer agrees

   Answered April 17, 2010 09:33. I don't think you can ever discharge sales taxes in a Chapter 7. Sales taxes are considered property of the trust. A vendor who collects sales tax holds the money in trust for the state until they pay it to the state. I think the state would argue in a chapter 7 case that the sales tax was fraudulently used by the business and therefore should not be dischargeable.

   • Dalton Bankruptcy Attorney

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