LLC in Chapter 7 Bankruptcy Not Obligated to Remit State Taxes on Behalf of Out-of-State Members

3 Pages Posted: 5 Dec 2020 Last revised: 8 Dec 2020

Date Written: October 12, 2020

Abstract

North Carolina has a statute providing that the manager of an LLC doing business in North Carolina must on behalf of out-of-state members remit to the state the estimated tax obligations of those out-of-state members. A recent decision from a bankruptcy court, In re North Carolina Tobacco International, LLC, Case No. 17-51077, 2020 WL 4582282 (Bankr. M.D.N.C. Aug. 10, 2020), considered whether an LLC in bankruptcy is obligated to make those tax payments. Spoiler alert — the court said “no.”

Suggested Citation

Rutledge, Thomas E., LLC in Chapter 7 Bankruptcy Not Obligated to Remit State Taxes on Behalf of Out-of-State Members (October 12, 2020). Bankruptcy Developments Journal, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3710094

Thomas E. Rutledge (Contact Author)

Stoll Keenon Ogden PLLC ( email )

2000 PNC Plaza
500 West Jefferson Street
Louisville, KY 40202-2828
United States

HOME PAGE: http://skofirm.com

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
17
Abstract Views
168
PlumX Metrics