Hey everybody, Bernie Gartland from the Gartland Group. Today we’re going to talk about something that Brian Bauer just did a little bit of a podcast on about the elements concerning sales taxes and the collecting of sales taxes in the state of California. One of the things that you need to know is that you have to abide by the rules from the state board of equalization in order to have sales taxes discharged in a bankruptcy. Now, I’m not saying that if you have an ongoing business and you’re accumulating sales taxes to go into a sales tax discharge-ability in bankruptcy, no, but many businesses fail for different reasons, and sometimes they fail and they splinter off and go into a corporation or a new entity.
What happens is that, if you haven’t followed the procedures correctly of closing down the old business, whether it’s personal, a sole proprietorship business, or whether it’s a corporation. Then, you could be assessed personally, and if you do not follow the procedure on how to end that business, those taxes cannot be discharged in bankruptcy, in fact, in one case, the state board of equalization came back on somebody eight years later for $95,000. We don’t want that to happen to you, so if you’re having trouble in your business and you’re not paying your sales taxes, and you’re thinking about closing your business down, I would suggest that you find somebody like our firm to talk to on how to do it correctly so eventually those sales taxes will be eliminated so you don’t have to be looking over your shoulder. For the next time, this is Bernie Gartland from the Gartland Group, we’ll see you next time.