What is the name of your state? New Jersey
I incorporated and registered a business in NJ back in the Fall of 2001. I had
done absolutely nothing with the business until November 2003, when I requested an EIN. It was a small job for $1000. In May of 2004 I attempted to dissolve the corporation. I filed both a State and Federal return indicating
that the business had lost money attempting to startup, thus paying no tax.
All of this occurred as I held a full time job with an employer (This was a
side thing). In addition, there is a bank account holding about $500, which I have not touched and do not plan on doing so.
Since, I had done nothing with the business in the prior years, I never filed
returns. Both Federal and State requested that I back file returns for those
years, which I had done.
Upon dissolution, the State requires a Tax Clearance Certificate from the
State Accounting Office (something along those lines). They denied the Tax
Clearance Certificate and indicated that I owed the "minimum tax" plus interest and penalties. I consulted a CPA and he indicated that I should do
nothing and forget about it, that it would eventually go away. I followed up
on the law and it indicates that the State can hold me personally liable for
all the back tax, interest, and penalties (Link
http://www.state.nj.us/treasury/taxation/text/condissolvtxt.htm).
I do not have the funds to pay the tax, interest, and penalties.
What advice can someone give me?
I incorporated and registered a business in NJ back in the Fall of 2001. I had
done absolutely nothing with the business until November 2003, when I requested an EIN. It was a small job for $1000. In May of 2004 I attempted to dissolve the corporation. I filed both a State and Federal return indicating
that the business had lost money attempting to startup, thus paying no tax.
All of this occurred as I held a full time job with an employer (This was a
side thing). In addition, there is a bank account holding about $500, which I have not touched and do not plan on doing so.
Since, I had done nothing with the business in the prior years, I never filed
returns. Both Federal and State requested that I back file returns for those
years, which I had done.
Upon dissolution, the State requires a Tax Clearance Certificate from the
State Accounting Office (something along those lines). They denied the Tax
Clearance Certificate and indicated that I owed the "minimum tax" plus interest and penalties. I consulted a CPA and he indicated that I should do
nothing and forget about it, that it would eventually go away. I followed up
on the law and it indicates that the State can hold me personally liable for
all the back tax, interest, and penalties (Link
http://www.state.nj.us/treasury/taxation/text/condissolvtxt.htm).
I do not have the funds to pay the tax, interest, and penalties.
What advice can someone give me?
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