bank account frozen (ny state sales tax, chap. 7)

This is a discussion on bank account frozen (ny state sales tax, chap. 7) within the Tax Issues forum, part of the BUSINESS & FINANCE LAW category; My daughter had a gift shop that did not make it and she filed chap. 13. one year later she ...

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Old Jan 12th, 2008, 11:21 PM   #1
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Lightbulb bank account frozen (ny state sales tax, chap. 7)

My daughter had a gift shop that did not make it and she filed chap. 13. one year later she had to file chap 7. She owed back sales tax and was informed that after the chap. 7 was finalized, ny state would send notice that she had to pay the back sales tax. Her chap. 7 was finalized in Sept. 07. She received no notice or phone call (her address was legally changed, she moved home), and she changed her address with ny state sales tax people in August of 2006. Her bank account was frozen, she called the tax people and they said numerous notices were sent (to the old address) and that she should have responded and why had she not paid this tax. They froze $5000. She was going back to school and needed some of that money to do so. She has a real estate license, but not making any money yet. She lives at home with parents that live on a pension. This is a hardship. She needed some of that money to go back to school and beable to get a job to pay back this debt. Is there anything she can do to unfreeze her account. Without access to her account, she will not beable to go back to school.
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Old Jan 14th, 2008, 12:11 AM   #2
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Default re: bank account frozen (ny state sales tax, chap. 7)

Well unfortunately if she owed it, it will be veryhard to get those funds back.

She may have to challenge the actual amount owed.

World Law's lawyers could also probably help resolve this if need be. You may email them on the home page.
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Old Apr 17th, 2008, 08:53 PM   #3
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Default re: bank account frozen (ny state sales tax, chap. 7)

Have her check with her bankruptcy attorney to see if the taxes were discharged in bankruptcy. If so, he can go to the court and ask the court to impose sanctions and issue an order for the return of the funds.
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Old Dec 20th, 2008, 03:53 AM   #4
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Default re: bank account frozen (ny state sales tax, chap. 7)

Sales taxes do NOT get discharged in bankruptcy (no taxes ever do)
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