S-Corp Outstanding Tax Liability?

[Days Off]

Hello!

I am a 50% principal owner of an S-corp that is operating a retail store. There is an outstanding federal payroll and state sales tax liability. It is likely that we will be ceasing operations of the store in the near future.

As 50% owner, am I only responsible for 50% of the outstanding tax liabilities? If the other party is unable to pay or files bankruptcy, will the IRS come after me for the entire amount outstanding?

My guess is yes, they will come after me for everything. Has anyone else been down this road and have any advice to offer?

Many thanks in advance.

[Freelancier]

When it comes to taxes, assume the worst. However, your best bet is to see if you can negotiate the liabilities down and your best chance of doing that is to enlist the help of a tax attorney or an accountant who has dealt with this type of problem before.

[Days Off]

Thanks for the reply Freelancier.

I am continuing to assume the worst and have solicited advisement from an attorney. Haven't yet had a consult, but some initial investigation that I've done indicates payroll tax liabilities are not dischargeable in bankruptcy filings...keeping some hope that I may only be on the hook for my 50% interest.