Legal Question in Bankruptcy in New Hampshire

payroll taxes in bankruptcy of a corporation

How are payroll taxes treated in a bankruptcy filed by a corporation and how is the president of the corp. affected?


Asked on 3/06/98, 2:43 pm

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Payroll taxes in bankruptcy

Payroll taxes are priority debts, entitled topayment before unsecured creditors. A Chap.11 plan must provide for payment in full.

Responsible officers remain liable for the withheld portion of the taxes. If the corp.does not make prompt payment, the officer is at risk. Such taxes are also not dischargeable in the officer's bankruptcy.

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Answered on 3/08/98, 7:02 pm


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