Legal Question in Bankruptcy in Virginia

unpaid payroll taxes/ new owner

My husband has been offered 1/3 of

a business that has an unpaid debt

of payroll taxes to both the state

and federal government. If he signs the contract giving him 1/3 ownership will he be personally responsible for these debts? The business is incorporated.


Asked on 8/06/08, 9:40 pm

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

Re: unpaid payroll taxes/ new owner

He will not be personally responsible for the debts incurred before he acquired the stock (assuming he was not otherwise liable based on being an officer or signatory on accounts before hand), but if he is in a position of control, he could be liable for any unpaid taxes going forward. I would generally look very closely before investing in a business that can't or won't pay its payroll tax obligations.

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Answered on 8/07/08, 11:48 am


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