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Taxes in Business Bankruptcy

Business Bankruptcy & Taxes in Indianapolis

Representing Businesses in Central Indiana

There are many misconceptions about whether taxes are dischargeable in bankruptcy. The issue is further complicated when it involves business taxes. If your business is filing bankruptcy, our experienced bankruptcy attorneys can answer all of your questions.

Redman Ludwig, P.C., has been representing businesses in Chapter 11 bankruptcy for many years. Our attorneys have the knowledge and experience to assist you with all aspects of filing business bankruptcy, including the tax issues.

Will the Business Have to Pay Its Taxes?

Some state and federal business taxes may be either reduced and repaid or discharged under bankruptcy. In general, when a business files bankruptcy, tax penalties can be discharged. The business will then pay the principal with interest over a five-year period.

A business will typically have numerous types of taxes included in a Chapter 11 filing such as:

  • Sales or excise taxes
  • Payroll taxes that are paid by the employer (non-trust fund taxes)
  • Payroll taxes that are collected by the employer and held in trust (trust fund taxes)
  • Property taxes
  • Secured claims/IRS tax liens

Because the laws governing business taxes and bankruptcy are extremely complex, your bankruptcy attorney must have familiarity with such cases. Redman Ludwig has the experience to provide business bankruptcy representation for challenging issues such as discharging, reducing and repaying business taxes.

Contact Us in Indianapolis

For a free telephone consultation to discuss business bankruptcy and taxes with one of our lawyers, please call 317-800-6181 or toll free at 866-660-6928, or contact us online.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.