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Category: Bankruptcy Law
Satisfied Customers: 17237
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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I had a retail store in Colorado. I filed a chapter 7 then

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I had a retail store in Colorado. I filed a chapter 7 then changed it to a chaper 13. I owed sales tax on the business. (State and city, collected seperatly). Since the bankruptsy has been discharged and I no longer own the business or any other assets (ie. my home) am I still liable for the sales tax? I have not received any "bill" from them since the discharge. The business was a sole owner.

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarification.

If you owe the state sales tax, whether or not they are dischargeable will depend on whether the sales taxes are considered an "excise tax" or "trust fund tax."

If you had to collect taxes after each purchase of an item that would not be dischargeable, Sales tax is considered a trust fund tax if the tax is assessed on the customer at the time of the sale and the responsibility to collect the tax is on the business owner

Sales tax that is the responsibility of the owner for the privilege of doing business in the state is considered an excise tax, these will be discharged in your bankruptcy.

In these situations, if you were a corporation, and the sales tax liability is on the Corp and not you personally then you may be protected from any collections by the State.

From my review CO has a sales tax, and it would not be discharged through your bankruptcy.


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