In a general partnership, if one partner owes the IRS, is the other partner at risk?

Get Legal Help Today

 Secured with SHA-256 Encryption

In a general partnership, if one partner owes the IRS, is the other partner at risk?

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.

Asked on April 20, 2012 under Business Law, Texas

Answers:

Glenn M. Lyon, Esq. / MacGregor Lyon, LLC.

Answered 9 years ago | Contributor

 

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.

 


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption