Need help with S-corp issue

[olesrus]

I have a running S-corp that used to be over two returants. I had to close one. I am considering PERSONAL bankruptcy because I can't sell the other and had to absorb so much debt from the close with the other that i could not pay myself. I also have a tax lein on the business that is way higher than any assets the business has.

I know the trustee will look at the business for available assets to sell...will the tax debt pretty much cancel any value?

[HHM]

It depends on whether the trustee can avoid the tax lien. (note, this is not likely to happen if the tax lien is solely related to the business).

But in general, yes, if the s-corp has more in "secured" debt or "liens" then the value of the assets, then the trustee won't necessarily care about the business as it relates to your personal bankruptcy.

[olesrus]

Hmmm

That's what I thought. I have spoken with a couple lawyers and they really don't know what to say. My tax lein is for trust fund taxes...I do have a payment agreement with the IRS that I am current on but that will not be paid off for some time. Consider...I " owe" IRS 120,000 with penalties and interest...and liquidated value of assets if business is closed would generate maybe 20,000 at auction.

So I sould hope trustee would allow business to continue. I do have a SBA loan that is up in 5 months on the business. That should free up about 1200.00 a month that I might be able to pay myself a little more.

By the way. Original sin to IRS was 60,000. I have paid them about 75,000 over the past 3 years on a payment plan but I still owe 120,000. Word of advise...never get in this position.

[BigJohn]

Check around for a CPA that handles business IRS trust fund liens. The CPA should be able to get this resolved preferrably in your favor.