Audience: Businesses
Trust fund taxes (Sales and Use Tax or Withholding Tax) are not dischargeable in bankruptcy if the liability is not paid (either for the business or the officer of that business).
When you fail to pay past due tax liabilities, a lien may be filed. A lien may affect your ability to maintain existing credit, secure new credit, or obtain a security clearance. The recorded lien serves as notice that the state may have a claim against your assets and is public record. Once the liability on the lien is paid in full, we will provide a release to the court and a copy to you so that anyone inquiring on the status of your lien will know that it has been satisfied.