Blytheville, AR asked in Tax Law for Arkansas

Q: I bought a rollback truck from a person who evidently owes back taxes on a business. They won't issue me a permit now.

I did not buy his business just a truck. Why am I required to pay the previous owner's back taxes on his business? The business that I am wanting to start has nothing to do with him. It will be under my name and my tax information.

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1 Lawyer Answer
D. Mathew Blackburn
D. Mathew Blackburn
  • Tax Law Lawyer
  • Englewood, CO

A: The asset most likely was subject to a tax lien and the owner did not have the authority to transfer the property. You can rescind sale and try to get your money back or wait for him to pay his taxes and hope the tax agency (IRS or State) doesn't take the truck in the meantime.

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