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

Asked in Covington, GA - about 3 years

I want to file a Chap. 7 for my small business. I have unpaid business sales tax debts. Are they dischargeable?

Attorney Answers (2)

Danielle Jeanne Eliot

Atlanta Bankruptcy Attorney

Licensed in GA

0

Answered about 3 years ago. Tax debt is not dischargeable in most cases unless. There are circumstances where it would be discharged but most times it is not

Flag

Mark as helpful

Jeffrey Branan Kelly

Dallas Chapter 7 Bankruptcy Attorney

Licensed in GA

Answered about 3 years ago. 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