business bankruptcy
Can the State Board of Equalization collect sales taxes owed to them once a business files for bankruptcy ?
I have a business in danger of going out of business but I’d like to know if California SBOE can continue collections even if my business files for bankruptcy.
If an unincorporated business (sole proprietorship or partnership) goes out of business, the owners are still responsible for the collected taxes. It does not matter if they or the business file bankruptcy, the debt survives.
If a corporation goes out of business, the Board of Equalization can, and will, make an assessment against the responsible people in the corporation and collect from then.
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