Dissolved corporation and taxes

[BROADST25]

What is the name of your state? PA.
I recieved notices from the IRS that I owed about $600.00 in 941 taxes and $1,300.00 in 940 taxes for the year 1996. The corporation was dissolved in the year 2000. I was an officer of the corp. I am in personal bankruptcy. My accountant who filed the returns that year told me to pay the 941 taxes. He also told me NOT TO PAY the 940 taxes. Of course when I called the IRS they said I was liable for both. The IRS says it's a dispute between them and the state of PA. The state didn't collect the correct amounts and That I Owe! I really can't afford to retain a lawyer. Should I pay?

 

[abezon]

I believe you'll have to pay the taxes. You're responsible for paying unemployment taxes of 6.2%. Form 940 allows you a credit of up to 5.4% for unemployment taxes paid to a s"certified state unemployment fund". If Penn is not certified, you don't get any credit (but shouldn't have to pay Penn in that case). It sounds like you paid Penn, but the IRS is not allowing the credit.