What is the name of your state? Arizona
Basically, I am a former member of the board of directors of a small non-profit company that is currently defunct. The company failed to complete the 2005 and 2006 taxes...a simple 990 form...no employment taxes or anything. As a favor to the director, I helped him complete the '05 taxes, which were 8 months late, and was under the assumption that he would do the '06 taxes, since we had no treasurer, and he was making all of the financial decisions and was the only one with access to the checking account. He did not do them. Since I received the IRS notices at my home, I signed for and accepted a certified letter that states the company owes $5000 in late fees for '05. I then took it upon myself, since no one else was willing or able, to send them a request for abatement.
My Questions are....
In what way or capacity will I be held responsible for this? How does the IRS determine who was responsible for doing the taxes? Will we be audited? Taken to court? What are the steps that they take and in what order? What should I expect? A bill to come to me personally because they have record that I was on the board? Do they usually approve these requests for abatement?
Basically, I am a former member of the board of directors of a small non-profit company that is currently defunct. The company failed to complete the 2005 and 2006 taxes...a simple 990 form...no employment taxes or anything. As a favor to the director, I helped him complete the '05 taxes, which were 8 months late, and was under the assumption that he would do the '06 taxes, since we had no treasurer, and he was making all of the financial decisions and was the only one with access to the checking account. He did not do them. Since I received the IRS notices at my home, I signed for and accepted a certified letter that states the company owes $5000 in late fees for '05. I then took it upon myself, since no one else was willing or able, to send them a request for abatement.
My Questions are....
In what way or capacity will I be held responsible for this? How does the IRS determine who was responsible for doing the taxes? Will we be audited? Taken to court? What are the steps that they take and in what order? What should I expect? A bill to come to me personally because they have record that I was on the board? Do they usually approve these requests for abatement?