Discharging SBOE Taxes Assessed to Officers of Corpor=
Posted: Fri Apr 25, 2014 11:26 am
Here is the Board of Equalization saying that a person who thinks he's going to get a responsible person assessment has some kind of duty to file a return claiming the personal liability for sales taxes:
http://www.boe.ca.gov/legal/pdf/McKoonH ... andler.pdf
________________________________
To: "cdcbaa@yahoogroups.com"
Sent: Friday, April 25, 2014 11:09 AM
Subject: Re: [cdcbaa] Discharging SBOE Taxes Assessed to Officers of Corporation
I agree that the return after the responsible party assessment is probably useless. I think it would be like filing an income tax return with the IRS after it assesses through the substitute for return procedure; we all know that such a return won't be treated as a return, and the debt can't be discharged.
It looks to me as if the only way to discharge sales tax to an individual is for the individual to file the return claiming the personal liability before the state makes its responsible party assessment.
But I stress again, I've never done this. Is there anyone out there who has actually discharged sales taxes owed by an individual? It would be really helpful to hear from that person.
- John D. Faucher
818/889-8080
________________________________
To: "cdcbaa@yahoogroups.com"
Sent: Friday, April 25, 2014 10:47 AM
Subject: Re: [cdcbaa] Discharging SBOE Taxes Assessed to Officers of Corporation
I'm not sure if or why a responsible officer would need to file a return after being assessed under California Revenue and Tax Code Section 6829.tion not already evident in the assessment.
I checked with an enrolled agent colleague just now and he hasn't ever heard of such a requirement.
Given that Ilko didn't address that issue, no other case law appears to address it either, and SBOE is very aggressive, it would be prudent to research further whetherthere is a requirement for filing a return under these circumstances.
Law Office of Peter M. Lively * Personal Financial Law Center I
11268 Washington Boulevard, Suite 203, Culver City, California 90230-4647
Telephone: (310) 391-2400* Toll Free: (800) 307-3328 * Fax: (310) 391-2462
On Friday, April 25, 2014 10:10 AM, Stephen Mark wrote:
It seems the more I learn about this area the less I know. Based on the responses, if my client was personally assessed by the SBOE for sales taxes unpaid by the corporation, more than 240 days ago, but did not file a tax return claiming such tax liability, she is unable to file BK at this timeStephen M. Stern, Esq.
Law Office of Stephen M. Stern, PC
(805) 543-5297
On Friday, April 25, 2014 9:23 AM, Peter M. Lively wrote:
Jeff,
I recommend investing a reasonable amount in the Morgan Kingmaterials thatcover this issue.
Law Office of Peter M. Lively * Personal Financial Law Center I
11268 Washington Boulevard, Suite 203, Culver City, California 90230-4647
Telephone: (310) 391-2400* Toll Free: (800) 307-3328 *
Fax: (310) 391-2462
On Thursday, April 24, 2014 7:57 PM, "jsmith@cgsattys.com" wrote:
I'm glad I posted. I know now to refer these cases out. I'm moreflusteredthan ever.
So, the PC who called last week with 10 year old SBOE salestaxes from a gas station he closed 10 years ago, who has moved to Indiana, and had the Cal SBOE drain his bank account last week, and who says the taxes were for a return that the company filed, but did not pay...what doI tell him? File an individual return for the liability that the company filed a return for 10 years ago and go underground for 2 years?
How about: "Call Peter Lively or Mark Markus orJohn Faucher?"I'm soooo confused.
GO KINGS GO!
-Jeffrey B. Smith**
CURD, GALINDO & SMITH, L.L.P.
301 East Ocean Blvd. #1700
Long Beach, CA 90802
(562) 624-1177
(562) 624-1178 fax
(310) 993-6560 cellular
www.expertbk.com
**Certified By The State Bar
Of California As A Specialist
In Bankruptcy Law
The responsibleofficer assessment following the entity's failure to pay. The entity could have filed the returns and been assessed based upon the returns, then failed to pay. I believe these are the facts of Ilko.
Law Office of Peter M. Lively * Personal Financial Law Center I
11268 Washington Boulevard, Suite 203, Culver City, California
90230-4647
Telephone: (310) 391-2400* Toll Free: (800) 307-3328 * Fax: (310) 391-2462
On Thursday, April 24, 2014 3:41 PM, John Faucher wrote:
"In Ilko, the debtor has not yet been assessed prior to the bankruptcy petition date, but was still subject to assessment so the CA sales taxes (excise not trust fund) was not discharged."
And how does an individual debtor get assessed for sales taxes incurred by his business? Either by having the taxing authority find him and make the assessment on his behalf, in which case there is no return filed (because the return filed by the business does not assess taxes against the individual), or he files his own return. If the taxing authority makes the assessment, no return, therefore no discharge.
- John D. Faucher
818/889-8080
The post was migrated from Yahoo.