Am from New York. Why aren't the sales taxes dischargeable in bankruptcy here?

1 Answers
Votes: 
-5 votes
+
Vote up!
-
Vote down!

In New York, sales taxes are considered as 'trust fund' taxes. That means you're collecting taxes to pay a government entity. You can't use up that money since it belongs to the state. For this reason, the sales taxes are not dischargeable in bankruptcy in NY.


Ask Question

Waterfall approach to debt free ™

Legal debt relief methodology that works based on your financial conditions. Learn more »

BBB-A--Rating