How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Roger Your Own Question
Roger
Roger, Attorney
Category: Bankruptcy Law
Satisfied Customers: 31022
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
6704987
Type Your Bankruptcy Law Question Here...
Roger is online now
A new question is answered every 9 seconds

I filed chapter seven in California on a C Corporation in August

This answer was rated:

I filed chapter seven in California on a C Corporation in August 2010. I know have State Board of Equalization coming after me personally. If I file Chapter 7 Personally can that debt be discharged?
Hi - my name is XXXXX XXXXX I'm a Bankruptcy litigation attorney. Thanks for your question.

Under California law, sales tax is imposed on the merchant, not the customer. Consequently, the tax doesn't fit the bankruptcy code definition of a "sales tax" and can possibly be discharged.

Also, the tax must meet the 3-Year, 2-Year Rules.. The 3-Year Rule is that the tax return on which the tax debt arises must have been due at least three years before you file for bankruptcy. The 2-Year Rule is that the tax return was filed at least two years before the bankruptcy.

You should definitely consider speaking with an attorney in your area about filing and getting these taxes discharged.
Customer: replied 3 years ago.

Thank you. I don't understand the 3-Year, and 2-years rules. I'm confused about the words tax return. It's not income tax it's sales tax?

Hi - -

You must have your tax returns (federal and state) filed - - your sales tax and use taxes are included on your tax returns. The rules mean that the taxes you're dealing with should have been paid at least 3 years before filing bankruptcy and that your tax return that involves these taxes was filed at least 2 years before you file bankruptcy.
Roger and other Bankruptcy Law Specialists are ready to help you

Related Bankruptcy Law Questions