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emc011075
emc011075, Tax adviser
Category: Tax
Satisfied Customers: 2744
Experience:  IRS licensed Enrolled Agent and tax instructor
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I used to own a car lot and it was a ONE member LLC in OHIO.

Customer Question

Hello. i used to own a car lot and it was a ONE member LLC in OHIO. I have since filed bankruptcy (discharged 2014) and closed the business. All tax returns have been filed every year of my life, I owe nothing to IRS or Ohio… except for Sales tax penalty for 2012 and 2014, totaling $850.00. Am I liable as the EX-Owner, can they garnish my wages or come after me personally???
Submitted: 8 months ago.
Category: Tax
Customer: replied 8 months ago.
Hello. i used to own a car lot and it was a ONE member LLC in OHIO. I have since filed bankruptcy (discharged 2014) and closed the business. All tax returns have been filed every year of my life, I owe nothing to IRS or Ohio… except for Sales tax penalty for 2012 and 2014, totaling $850.00. Am Iliable as the EX-Owner, can they garnish my wages or come after me personally??? I am getting collections calls and really want to tell them to shove it since i am not liable and the business is clsoed... am i right or can this 850.00 come back on me one day?
Expert:  emc011075 replied 8 months ago.

Hi. My name is ***** ***** I will be happy to help you.

Sales tax, just like payroll tax is a business tax. In OH single member LLC is disregarded entity for tax purposes, which means the business and the owner are the same tax entity. Unless the debt was discharged in bankruptcy, you are still responsible for it. Closing a business doesn't make the tax debt disappear or go away.

Unfortunately yes, OH will put a lien on your property and take your state refund if you do not pay it. OH has 10 years statue of limitation for collection.

Expert:  emc011075 replied 8 months ago.

Closing the business will stop other creditors and with the limited liability protection will protect your personal assets, but it will not stop the tax collector, government or state.

Customer: replied 8 months ago.
the smart thing to do would be to pay it or the debt will just get bigger most likely?
Expert:  emc011075 replied 8 months ago.

Yes. Penalty and interest will grow until yo pay it off or the debt is satisfied otherwise.

Expert:  emc011075 replied 8 months ago.

I owed OH for school district and they took my federal refund. OH is a tough creditor.

Anyway, is there anything else I can help you with today?

Expert:  emc011075 replied 8 months ago.

And if this answered your question, please take a moment to rate my response so that I may receive credit for assisting you today. You find the rating bar on the top of the page – 5 stars. However, if you need clarification, or want to discuss this issue further, let me know. Thank you.