As a non owner of a business that owes the DOR money, am i obligated to pay any of this?

My father owned a used car dealership that has closed and owes the department of revenue money. He was the sole owner i was the manager. I had access to the bank account and signed the checks. Because of this the DOR says i am just as obligated to pay the money as my father. They want all my personal information and bank accounts. Being that i was not an owner and my name was not legally on this business but i did sign checks, can the DOR hold me financally responsible for the debt my father owes?
Answer this question Add to list

Answers (2)

Michael Duane Cross Jr.

Michael Duane Cross Jr.

Contributor Level 4
You need to talk to a local attorney quickly. In most jurisdictions (and for federal taxes), those who have check-signing authority and/or managerial authority can be the "responsible person" and have liability to pay these types of taxes even when the business was operated through a corporation or LLC. Look for an attorney who has experience with "tax controversy", "tax litigation", and/or tax audits. Sometimes, the attorney's practice attorney will be described as involving "state and local taxes". Even someone whose practice involves "sales and use tax" may be able to help.

Good luck,

Michael
1 0
Fabio Ambrosio

Fabio Ambrosio

Contributor Level 5
It depends on whether you're talking about B&O tax or sales taxes. If the LLC didn't pay B&O tax and you kept corporate formalities at the LLC level, it will be very hard for the State to come after you personally. However, the story changes almost completely if the taxes the LLC owes are for sales taxes collected but not remitted to the state. If you were the owner, accountant, manager or other director of the LLC the state can (and likely will) come after you. Feel free to give me a call if you'd like to discuss this further. Fabio Ambrosio Attorney at Law (206)801-0985 www.ambrosiolawfirm.com Disclaimer: This answer does not create an attorney-client relationship and is for informational purposes only. It is not, nor is it intended to be, legal advice. You should consult your attorney for legal advice tailored to your individual circumstances.
0 0
Back to Search Results

Ask a Question

Get free answers from real lawyers.