Business sales taxes owed to Department of Revenue...can't pay....Bankruptcy?

Our business was recently audited by the FL DOR and they have billed us for over $70,000. We fought this every step of the way, with a tax attorney and a CPA, but got nowhere. We are not able to pay this amount and are now trying to settle. My parents are the sole owners of the corporation. Business has been slow, so other debts have accumulated as well. Now we are considering bankruptcy of some form, but still hoping to keep the doors open. Might this be possible?

Tallahassee, FL -

Attorney Answers (1)

Mark L Rosenberg

Mark L Rosenberg

Tax Lawyer - Bethesda, MD
Answered

Many states have payment agreement plans, and might accept a sum less than you owe if you show that the tax can't be paid by either the corporation or your parents personally. Are these withholding taxes, sales taxes or what? The type of taxes matters if you are considering putting the company into bankruptcy. I would consult bankruptcy counsel about this to understand your options.

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