In a general partnership, if one partner owes the IRS, is the other partner at risk?
Question Details: I am in the process of starting a business. I recently learned that my business partner owes the IRS thousands of dollars in back taxes.
Glenn M. Lyon, Esq. / MacGregor Lyon, LLC.
Answered 11 months ago
This attorney is licensed in Georgia
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If the amounts owed to the IRS relate to the partnership, yes. However, even if not, note that your partner's ownership in the business is an asset that the IRS may go after. Most states have charging orders, which preclude the creditor from participating in the management of the company, but it would still be a difficulty.