Can civil suit be brought against an owner of a business for his portion of the taxes and penalties owed but that have already been paid by the other co-owners? At the time the IRS was unable to locate the owner and the balance was paid in full by the other partners. Now he has been found, and has assets. Are there any options?
1 Answer from Attorneys
If they were payroll taxes and the government assessed each partner individually as responsible parties, then yes, there is a specific federal statute that allows you to seek contribution to the extent you paid more than your pro -rata share. If they were taxes which were not assessed against the partners individually, then you are dealing with just another business debt and you have to look to your business documents, such as a partnership agreement or operating agreement or corporate bylaws to see what rights/responsibilities are set forth in them. You might also have a statutory remedy depending on whether the non-contributing person breached a duty to the other partners, members or shareholders.
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