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HCLegal, Attorney
Category: Bankruptcy Law
Satisfied Customers: 423
Experience:  I have filed over a thousand bankruptcy cases.
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Hello, I wanted to seek legal advice regarding owed taxes to

Resolved Question:

Hello, I wanted to seek legal advice regarding owed taxes to the IRS if the business, a California corporation, files for Chapter 7 or 11. Will the owners be liable for owed taxes on the business entity?
Submitted: 4 years ago.
Category: Bankruptcy Law
Expert:  HCLegal replied 4 years ago.

HCLegal :

Hello and thank you for your question here on Just Answer.

HCLegal :

Yes, the owners of a corporation are personally liable for any IRS debts incurred by the business.

HCLegal :

When a corporation files for bankruptcy it does not get a discharge. The discharge is the court order saying you do not owe the money any more. Therefore, when a corporation files bankruptcy the debt does not go away and you would still be personally liable for it, in this case with the IRS.

HCLegal :

Please let me know if you have any other questions.

HCLegal :

Or if you need clarification on my answer.

HCLegal :

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