and potentially owners of the entity for the unpaid taxes. For example, if a corporation goes bankrupt, owing $100,000 in income tax, the managers of a business entity (corporation, limited liability company, etc.) have no personal liability for this tax (it is owed by the entity on its own), but if it owed $500 in sales taxes the government to whom it is due can go after management as a personal liability for the tax (the entity was supposed to collect the tax in trust for that government, segregate the funds until due and pay it). In some cases non-payment of trust fund taxes can be more serious than non-payment of income or other taxes. In California, for example, it is a misdemeanor for the management of a business entity to willfully fail to remit trust-fund taxes such as any withholding from an employee's wages made pursuant to a state or local law, and if the amount of tax due exceeds $500 the class of crime becomes a felony (see California Labor Code Section 227). On the other hand, income tax evasion is punishable with a fine and/or imprisonment (see California Revenue and Taxation Code section 19706). See also Trust Fund Recovery Penalty Sales taxes Withholding taxes