Unpaid Payroll Taxes Could Fall on the Shoulders of a Partner

In the latest Kiplinger Tax Letter, you can read more about the following story and more.   

The IRS billed a partnership that failed to send in withheld taxes and filed tax liens against the general partner, even though the agency never billed her for the taxes. She filed for bankruptcy and then sought to have the liens invalidated.  The court did not allow this because state law makes partners liable for their firms’ debts. 

Since the IRS billed the partnership within three years of the payroll tax delinquency, it has 10 years from the date of assessment to collect from the general partner, so the tax liens on the partner remain in force, despite her bankruptcy (Pitts, D.C., Calif.).

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