IRS can go after a partner for a firm’s unpaid payroll taxes, a court says. The Service timely billed a partnership that failed to send in withheld taxes and filed tax liens against the general partner, even though the agency never billed her for the taxes. She filed for bankruptcy and then sought to have the liens invalidated. But the court said no because state law makes partners liable for their firms’ debts.
Since IRS billed the partnership within three years of the payroll tax delinquency, it has 10 years from the date of assessment to collect from the general partner. So… the tax liens on the partner remain in force despite her bankruptcy (Pitts, D.C., Calif.).