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Jon Andrews
Jon Andrews, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 3118
Experience:  I deal with all levels of tax planning and controversy - from the ordinary to the complex.
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I dissolved an LLC in February 2004. I have recently been contacted

Customer Question

I dissolved an LLC in February 2004. I have recently been contacted (through a collection agency) by the town in which my office was located regarding past due personal property taxes for the business property (tax and interest incurred) for 2003. I am wondering what my liability is for both the tax and interest. Is there any limit to the interest that can be collected on past due taxes following a dissolution? (Note: The first contact I have received on this matter was from the collection agency a few weeks ago. I received no other contact prior to this.) Thank you very much for your help!
Submitted: 7 years ago.
Category: Tax
Expert:  Jon Andrews replied 7 years ago.

Generally, when you dissolve an entity, provision must be made for outstanding liabilities. If there are not sufficient assets to cover all of the liabilities then the member/owner should not receive anything. Most liabilities would end at that point. However, in most cases, taxes and additional charges related to those taxes carry through to the owner even after dissolution.



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