Legal Question in Business Law in New Jersey

Former owner responsible for tax debt?????

In 1998, my husband ''bought out'' of the diner he owned with this previous wife. She was ''bought out'' in 2000. I just received a call from a collector stating that my husband owes back payroll taxes from 1999-2002! Can they legally come after us from this (we do have documents stating all the legal stuff of the buyout). He said that since my husband is listed as an officer (shouldn't that have been removed when the papers were filed) he is ultimately responsible for the debt of his ex wife AND the person who currently owns the diner. Is this legal? We are talking tens of thousands of dollars of debt incurred after he was no longer an owner?

I sincerely appreciate any and all information someone can give me!


Asked on 11/18/02, 6:25 pm

2 Answers from Attorneys
Walter LeVine Walter D. LeVine, Esq.

Re: Former owner responsible for tax debt?????

He would be responsible for all periods during which he was an owner. This would be 1999 and the portion of the year 2000 during which he was still involved with the business. Once he was bought out, he was no longer a responsible person and the ministerial act of not deleting him from the corporate records should not be used to claim responsibility. Additonally, he has the right to sue for contribution from his "x" and the new owner for any amounts he truely owes and for which he disclaims responsibility for payment, plus any amounts after his buy-out for which he might be held responsible. He did have an obligation to see he was removed from all business records after the buy-out and his failure to check might be used against him.

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Answered on 11/19/02, 10:34 am
Joel Selik www.SelikLaw.com

Re: Former owner responsible for tax debt?????

Depends on his position.

www.taxworkout.com

800-894-2889

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Answered on 11/19/02, 10:50 am


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