LLC In Chapter 7
Bankruptcy Not Obligated to Remit State Taxes on Behalf of Out-of-State Members
In Business Law Today, Jonathan
M. Stemerman and I have published a short review of the decision rendered In
Re: North Carolina Tobacco International, LLC, 2020 WL 4582282 (Bankr.
M.D. N.C. Aug. 10, 2020), which addresses the fact situation of a state law
requiring an LLC to remit estimated payments on behalf of out-of-state members
when the LLC is in bankruptcy. Cutting to the chase, the court held that the
LLC in bankruptcy was not subject to this obligation.
HERE is a link to that article.
This case highlights how tax obligations can shift during bankruptcy, especially for LLCs with out-of-state members. It’s an important reminder of the complexities surrounding Chapter 13 bankruptcy Georgia and related tax issues.
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