Is it legal for a business to be sold when the business owes back taxes to the government and this is not disclosed to the bu...
Full Question:
Is it legal for a business to be sold when the business owes back taxes to the government and this is not disclosed to the buyer of the business?
09/23/2007 |
Category: Corporations |
State: Florida |
#8957
Answer:
Unpaid back taxes, such as sales, unemployment, FICA tax payments may be a hidden liability in purchasing a business. Athough an extensive review of the business financial records is a must, it may not uncover all of the business liabilities. If the sales contract specifies that you are going to assume the liabilities of the business, it should be specified on the written sales agreement exactly which liabilities will be assumed, along with the dollar amount of each so that you are not held liable for others of which you may not be aware.