Can a federal bankruptcy discharge sales tax audit balance leins if the owners business fails,along with owner before bal paid

Asked over 5 years ago - Boise, ID

this was a business sales tax audit after three years in business 1998 to 2001. I worked out a deal to pay 1500 a month until paid. after about 15 mo. my business failed and I no longer could pay any bills. the state still wanted there money. after speaking with sales tax collection supervisor, he said that since I had paid over 12 months of payments in good faith before the bus failed it was the now a dischargble debt. he said he would deny he said it but that it would stop the collections. there have been no collection and no release. this is a big problem trying to buy a home.

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    Answered . Sometimes sales taxes are dischargable and sometimes not. You need to consult a local bankruptcy attorney and present him or her with all the details of the audit. The bankruptcy attorney will easily be able to tell if they are dischargable.

Related Topics


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.

Debt discharge

Debt discharge is when a debtor is no longer responsible for paying off some or all of a debt. This discharge can occur for some types of debts in bankruptcy.

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