Kunzman Featured in NJBIZ Article on Tax Delinquent
Businesses
Roseland, NJ,
September 29, 2008
– Kenneth F. Kunzman, a Partner with Connell Foley LLP of
Roseland, New Jersey, was featured in the September 22, 2008
Edition of
NJBIZ
in an article on tax delinquent businesses in New Jersey. In
“Businesses Owe New Jersey About $170M,” reporter Martin C. Daks
explores the phenomenon of companies that owe the state from
$15,000 to over $5 million each in back taxes and what the state
is doing and not doing to collect these funds.
Mr. Kunzman provided some insights into what could happen if one
of these delinquent businesses was sold, indicating that buyers
must beware not to get caught up in the seller’s tax or other
liabilities. “If the stock of a business with trust-fund
liability is sold to another firm, the buyer may be responsible
for the liability,” Kunzman said, explaining that the state may
be able to go after the new owner for those monies owed.
“But if the buyer purchases the assets of the old company,
instead of its stock, the buyer may not have to assume the
liability,” Kunzman added. When unincorporated businesses get
sold, however, the waters get a bit murky. “If the buyer
carries on the same kind of business, he or she may become
responsible for the liabilities,” said Kunzman.
Mr. Kunzman explained that successors benefit from the assets
and reputation of the former entity, so the successor should
shoulder some of the liabilities. “If the state or other party
has a lien on the assets, they may be subject to seizure from
the new owner,” Kunzman concluded.
Mr. Kunzman
is a member of the firm’s
Taxation and Estate
Planning,
Corporate Law and Transactions and
Business Litigation practice groups. For more information,
please call 973-535-0500 or send an email to
kkunzman@connellfoley.com.
