Can a state take personal assets if our company owes taxes? How? 18 Answers as of July 27, 2015

Can the state take personal assets from us for a company that we owned that owes the state? The company was a corporation. Thanks.

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Stephens Gourley & Bywater | David A. Stephens
Not unless the state pierces the corporate veil or the assets appear to be used in the business.
Answer Applies to: Nevada
Replied: 7/27/2015
Lawrence Lewis
Lawrence Lewis | Lawrence Lewis, PC
YES because taxes as owed.
Answer Applies to: Georgia
Replied: 7/27/2015
KEYL ADR Services, LLC | Mark D. Keyl
It depends on your corporate structure and the ability to pierce the corporation. I am an employment attorney and don't do this type of work.
Answer Applies to: Mississippi
Replied: 7/27/2015
Ronald K. Nims LLC | Ronald K. Nims
It depends on the type of taxes. Taxes that the corporation collects from others (employee withholding and sales taxes, for example) may be collected from the owners of a small corporation. Taxes imposed on the corporation itself (property taxes and income taxes) cannot be collected from the owners.
Answer Applies to: Ohio
Replied: 7/27/2015
Law Offices of Robert Burns
Law Offices of Robert Burns | Robert Burns
This is obviously not a personal injury matter. I don't practice much tax law, but elementary corporate law is that actions of corporate personnel bring liability to those individuals and the corporate and the corporate veil can be pierced where shareholders disregard its formalities.
Answer Applies to: California
Replied: 7/27/2015
    Law Offices of George H. Shers | George H. Shers
    If the company was properly incorporated and not used for fraudulent purposes, the only assets that can be taken are those put into the corporation.
    Answer Applies to: California
    Replied: 7/27/2015
    Andrew Gordon
    Andrew Gordon | Andrew Gordon
    Yes, in some cases the State can assess a personal penalty on behalf of the corporation. I would suggest retaining a tax attorney to assist in resolving this situation.
    Answer Applies to: Illinois
    Replied: 7/27/2015
    S. Joseph Schramm | Joseph Schramm
    The state can pursue the owners personally if the state determines that the corporation was a mere shell or alter ego of the owners. This usually happens in the cases where, in reality, the corporation is nothing more than a sole proprietorship or partnership in name only.
    Answer Applies to: Pennsylvania
    Replied: 7/27/2015
    Law Office of Lisa Hurtado McDonnell | Lisa Hurtado McDonnell
    Yes, they generally start with liens against your bank accounts.
    Answer Applies to: Utah
    Replied: 7/27/2015
    Polsinelli Shughart PC | William B. Prugh
    There can be personal liability to the state and the IRS for sales taxes, withholding taxes and a portion of employment taxes. It is called by various names including the "responsible person" penalty if the tax is not paid over by the corporation. The definition of responsible person focuses on the persons who paid other creditors rather than the state or IRS.
    Answer Applies to: Missouri
    Replied: 7/27/2015
    You generally are not liable for your corporation's debts. But there are exceptions, such as unpaid payroll taxes, etc. I do not have enough facts to answer your question.
    Answer Applies to: Georgia
    Replied: 7/27/2015
    Andrew T. Velonis, P.C.
    Andrew T. Velonis, P.C. | Andrew Velonis
    You ran a company, you owe taxes, and now you are looking for freebies on the 'net. Wow.
    Answer Applies to: New York
    Replied: 7/27/2015
    Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
    Generally, the owners of a corporation are personally liable for certain taxes, such as withholding taxes and Unemployment Compensation. There is more than one way of approaching the problem of tax claims which are too high for you to pay. You could consider filing an Offer in Compromise, for example. Discuss the problem with a CPA who specializes in taxes. Good Luck.
    Answer Applies to: Wisconsin
    Replied: 7/27/2015
    James E. Hasser, Jr. P.C.
    James E. Hasser, Jr. P.C. | Jim Hasser
    Consult a tax lawyer and/or your accountant. Good luck.
    Answer Applies to: Alabama
    Replied: 7/27/2015
    Musilli Brennan Associates PLLC
    Musilli Brennan Associates PLLC | John F Brennan
    Commonly yes as there is officer's liability.
    Answer Applies to: Michigan
    Replied: 7/27/2015
    Bulman Law Associates PLLC Injury Law Firm
    Bulman Law Associates PLLC Injury Law Firm | Thomas Bulman
    Depends but the question is whether the amount of money they levied justifies hiring and attorney to argue about it?
    Answer Applies to: Montana
    Replied: 7/27/2015
    Law Offices of Ronald A. Steinberg & Associates | Ronald A. Steinberg, BA, MA, JD
    Was your company a corporation? I think you need to talk to your corporate lawyer or your tax advisor. If I am an employee of a company, not an officer or director, the company's debts, including taxes, are not mine. But if I am running a company like it is my own toy, and am using company assets to buy personal stuff, then the personal stuff is really owned by the company, and therefore is an asset of the company, and can be attached to pay debts.
    Answer Applies to: Michigan
    Replied: 7/27/2015
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