Legal Question in Business Law in New Jersey

Re: Financial Responsibility

As an officer, director and/or stockholder, and particularly if you signed or have responsibility for employment tax returns, you are considered a "responsible person" as to IRS and trust fund portions of social security withholding and similar trust fund taxes. IRS can go beyond the corporation and assert personal liability to recover any unpaid employment taxes. If you have personally signed or guaranteed the bank debt, you also have personal liability beyond the corporate liability. In either case, if you transfer your assets to your spouse or anyone, both the bank and IRS can apply the law regarding transfers in fraud of creditors to follow the assets transferred or their value to the transferor. Usually this can be done for a least 1 year following the transfer date, and if IRS can prevail, they can have state transfer laws apply which in some instances can go up to 3-4 years from the date of transfer.