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Lev
Lev, Tax Advisor
Category: Tax
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Experience:  Taxes, Immigration, Labor Relations
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I owe a lot of sales tax to the Indiana dept. revenue. This

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I owe a lot of sales tax to the Indiana dept. revenue. This i from about 2 years ago to 10 years ago. Any possible way to discharge or eliminate these? It's probably 100k. They had a collection co. called my several time. But we never talked, they just left a couple messages. Haven't heard from them in about a year, and it obviously worries me.

Any Ideas?

Thank - M<ark

Hi Mark,

 

Chances that your tax debt would be forgives are very low...

By collecting sales tax from customers - you acted as an agent of the Indiana Department of Revenue - and the money you collected never belonged to you.

That debt is different from the income tax debt when we pay the tax based on net income - that may be reduced by deductions and credits.

Most courts hold that sales tax debt is a not dischargable under bankruptcy law...

 

Nowadays all states are short on revenue and become mor e aggressive in collection activities - so most likely you will be contacted...

Your best move would be to negotiate installment payment plan and may get forgiveness of penalties, but it is unlikely that you will be forgiven the interest.

 

To get better deal - you might want to have a local CPA or Enrolled Agent to represent you.

 

Let me know if you need any help.

 

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