What can I do to prevent a levy on my personal bank account for supposed sales tax due on a business that was dissolved over 2 years ago?

UPDATED: Apr 22, 2011

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What can I do to prevent a levy on my personal bank account for supposed sales tax due on a business that was dissolved over 2 years ago?

We also recently declared personal bankruptcy so we don’t have much left in the amount of cash or property.

Asked on April 22, 2011 under Bankruptcy Law, California


MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Unfortunately, in bankruptcy, most agency and administrative fines, penalties, and state and federal taxes are not dischargeable. So, you may not be able to prevent a levy or garnishment on any or from any of your personal assets. What you can do is review what you owe and to whom, and consider working out a payment plan to repay the taxes owed. If you feel you do not owe simply because your business was dissolved two years prior, please understand that most agencies have several years to collect on back taxes owed, as well as any associated fines. Your best bet is if you have an existing income, consider making periodic payments through a periodic payment plan. If you feel you can ride it out, understand the garnishment can happen at any time and you may not realize it until you actually have it garnished or your assets frozen.

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.

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