Can I close my company and start a new one to avoid tax debt?

Is it just a pipe dream?

There are some circumstances where you can get out from under a massive tax liability, let's go over how and when you can close a company and get out of tax debt in the process.

The biggest tax debt a company likely faces is employment tax liabilities.

Instead of paying in full, you may be able to pursue an Offer in Compromise, or tax settlement. 

Always work with a professional tax attorney, who can ensure you close and re-open your business properly to avoid any issues with the IRS. There are situations where the IRS will sue the individual officer for more than just the TFRP if the closing of the business wasn't handled correctly.

Successor Liability is a hazard you need to consider when starting a new business after closing a previous one. The IRS has rules regarding successor liability, meaning the IRS can go after you for debts of the closed company.

There are many factors to consider...

Taxes are complicated, and the process of closing and re-opening a business to avoid paying large sums of money in tax debt is even more challenging. Many things can go wrong, and your problems can grow if you don't consult with a tax professional before you sell, divest, bequeath, or gift assets to someone else when you still owe taxes.