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

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

Covington, GA -

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Attorney Answers (2)

Danielle Jeanne Eliot

Danielle Jeanne Eliot

Bankruptcy Attorney - Atlanta, GA
Answered

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

Jeffrey Branan Kelly

Jeffrey Branan Kelly

Chapter 7 Bankruptcy Attorney - Dalton, GA
Answered

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.

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Debt

There are different types of debt, but all involve one person (the debtor) owing money to another (the creditor). Terms of repayment are governed by a contract.

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