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

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.

Boise, ID -

Attorney Answers (1)

Franklin Moore Mclaughlin IV

Franklin Moore Mclaughlin IV

Tax Lawyer - Providence, RI

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.

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