Legal Question in Tax Law in Virginia

Re: IRS verses salvaging small business

It's not simply a matter of "renaming" the business. Much depends on how the business is organized (i.e. is it a corporation, a partnership, an LLC, a proprietorship?), and whether the IRS has filed liens. The basic structure is that you (or any other buyer) could purchase the assets from the business for their fair market value, giving the IRS due notice, probably (depending on the exact facts) by filing an Application for Certificate of Discharge, so that the assets can be purchased by the new entity free of the tax liens. The old company would get the money for its assets and would use it to pay at least part of its taxes, and the new entity would get the assets. Eliminating the balance of your father's tax debt then turns on the nature of the tax (income, withholding, trust fund recovery penalty, etc.). This is pretty complicated stuff and has to be done right. You need to find someone who will deal with this knowledgeably and ethically. Do it wrong and it won't work and you and your father could both be in more trouble than you could imagine. Do it right, and you can acquire the assets and give the business a fresh start on a sound business and financial footing.