Keith Fogg has made available for download his article, “Can Bankruptcy Trustee Be Held Liable For Trust Fund Recovery Penalty of Responsible Officer?” published on Procedurally Taxing blog. The article begins as follows:
In In re Big Apple Energy, LLC, No. 8-18-75807 (Bankr. EDNY 2022), the owner of a business that failed to pay the taxes withheld from employees over to the IRS sought an order that the bankruptcy trustee was personally liable for the interest and penalties arising from the failure. In rejecting this claim, the bankruptcy court found that the trustee could not be held liable for unpaid taxes for which no claim was filed against the estate. The holding does not mean that a bankruptcy trustee could never have liability for the failure to pay trust fund taxes, but the court does not hold the trustee liable for taxes that arose before he came on the scene and where he fully paid the claim filed by the government entities.
To see the full article, click here: “Can Bankruptcy Trustee Be Held Liable For Trust Fund Recovery Penalty of Responsible Officer?”
Posted by Mallory Wentz, Associate Editor, Wealth Strategies Journal.