According to the 4th Circuit Court of Appeals, if you fail to tell your state taxing authorities after the IRS adjusts your taxable income, it may prevent you from discharging your state taxes in bankruptcy. Most states with personal income taxes base their determination of taxable income on federal taxable income, subject to some additions [...]
discharging tax debt in bankruptcy
It is well established law that “trust fund” withholding tax liability may not be dischargeable in bankruptcy. What you may not know is that business owners or even senior employees who are not owners may be held personally responsible for payment of withholding tax debt, and such debt is not dischargeable in a personal bankruptcy [...]
