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Chief
Signed as an owner? Sounds like he needs to find that paperwork and figure out what he signed.
The answer is maybe and he should talk to a professional. Potentially a lawyer.
Chief
We have absolutely no idea. You need a lot more details than you have.
They all start with “I have a quick tax question…” 😂
I’m afraid he likely is liable. He needs an attorney.
There are no quick tax questions. Pay someone to help.
Lol
Nothing rude about it. Until you read the partnership agreement you have no idea. And having someone analyze that isn’t cheap or free. But more than likely he will have to pay something if not everything.
Quick tax question? Just signed as a partner? Just signed as an owner? Helped out a friend? Co-signed a loan? I have so many questions… I don’t see why he would sign as a partner/owner if all he did was to co-sign a loan to help out a friend. Being a partner of a general partnership (I assume these friends weren’t smart enough to setup a limited liability company) mean he is personally liable for the liabilities of the partnership, which obviously would include any tax liabilities. However, a partnership isn’t subject to federal tax, the partnership is obligated to report its income and expenses to its partners, so the partners would consider their shares of income and expenses on their personal returns, regardless whether the partnership has ever distributed any of the earnings to the partners.
If the friends have been deported, what happened to the assets of the partnership? As the remaining legal owner of the business, can he sell the assets to cover the tax bill?
What does signed as owner mean? He signed the tax return as owner? Did he contribute money to the bar to start? Did he receive money from the bar?
Yes I think he needs a lawyer as well. It’s a sticky situation
Rising Star
He co-signed a loan to open to the bar, is that right? Where is the bar now? If they have $70k in taxes, they obviously had income. Was he a Partner in the agreement? Did he ever receive income? What was the benefit of co-signing the loan with no equity, no income, and no part of the Partnership?
You are missing probably 90% of the details you need for us to give you an answer. Sorry 🤷🏼♂️
An example of quick tax question is “what is standard deduction this year?” What you asked is as far from a quick tax question and requires legal advice and most likely legal representation. The “quick” answer to this from an ethical perspective is yes owes that money if he is listed as an owner/partner. Hope your uncle gets legal help ASAP, and read through what he was signing and understands the situation he is in. Best of luck.
Call optima tax relief
Chief
He needs to hire a professional lol
Quick answer: yes
Here is the other thing - hiring legal counsel along with a tax accountant to fight it will cost more than $70k as well.