Q: If I transfer ownership of a business to my father, what are my options and responsibilities given there's back taxes?

A: You can transfer 100% of your interest in the business to your father. You will be legally responsible for all taxes incurred by the business prior to the effective date of your transfer of your ownership interest.

A: Transferring ownership of the business to your father is possible, but you need to address the back taxes first. Since the business is under your name and has unpaid taxes since 2018, you could still be held responsible for those liabilities even after the transfer. It's crucial to work on settling these tax issues to avoid any potential legal or financial repercussions for both you and your father.

Before transferring ownership, ensure that all necessary tax filings are up to date and any back taxes are addressed. You might need to negotiate a payment plan with the IRS or your state tax authority to settle the owed taxes. Once the tax issues are resolved, you can proceed with legally transferring the business ownership to your father through the appropriate legal channels, such as drafting a formal agreement and updating the business registration with the state.

After the transfer, your obligations related to the business should diminish, but you must ensure that all prior tax responsibilities have been properly handled to avoid future complications. It might be helpful to consult a tax advisor or attorney to guide you through this process and ensure that both you and your father are protected.