New Jersey Tax Court Finds Sole Owner Liable for Sales Tax of Bankrupt Business

The New Jersey Tax Court issued a decision affirming the Division of Taxation’s determination of taxpayer’s sales tax liability as the responsible person of a business in which he is the sole owner. Taxpayer owns a food retail business which filed for Chapter 11 bankruptcy in September 2012, and listed taxes owed to the Tax Division. Following that filing, the bankruptcy court entered a consent order between the business and the Tax Division, in which the business would pay $167,848.90 in satisfaction of the $342,567.65 tax debt over an 84-month period. The Division of Taxation subsequently audited the business for ...