Personal liability for back corporate taxes?

[cxm827]

What is the name of your state (only U.S. law)? North Carolina

SubS corporation with no assets and not actively doing business, sole shareholder. Corporation owes about $20k in Fed and State income taxes.

If the corporation dissolves or files bankruptcy, is the sole shareholder/officer personally liable for the taxes?What is the name of your state (only U.S. law)?

 

[tranquility]

Maybe. It depends on the type of the tax and how the corp did business in the days after the imposition of the tax. For example, if you took a big distribution when you knew the taxes would be due, I think they could go after you. Also, if it is for trust fund taxes, they'd certainly go after you. Give some more facts about what happened.

 

[cxm827]

Corporation was formed to do consulting and remodeling.

Had some bad tax advice and had new CPA redo all personal and corp taxes for 2003-2006. That shifted big part of taxes from personal to corporate. Still owe some personal for those years and about $20k in corporate income taxes for 2003-2005.

I've talked to several attorneys and CPAs and seem to get different stories. A couple say just dissolve the corporation, another says personal bankruptcy. Any thoughts are appreciated.

 

[tranquility]

I'd say you have problems. It would require looking at all the facts to be sure, but the shifting of the burden from personal to corporate is suspicious. Suspicious does not mean you are liable, it just means that an opinion cannot be given without looking at everything.

See a BK attorney. He'll give you the best advice as to if you will be liable for the taxes or not.

 

[cxm827]

Thanks so much. I'll keep digging.