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Question

I own a corporation that owes back 941 taxes. I am currently negotiating an OIC with the IRS. I have a great opportunity to start another company but am afraid that the IRS will attach that company with my other companies debt. I’m not trying to get out of paying taxes I just don’t want to hurt the other corporation.
Please advise.

Submitted: 88 days and 9 hours ago.
Category: Tax
Value: $15
Status: CLOSED
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Country/State/Province of question: MI

Already Tried:
I formed an LLC but a friend said I should change the LLC to a C Corporition.

Accepted Answer

Hello and thank you for using Just Answer. Only the corporation and the people responsible for paying the employment tax will be held liable for payment of the employment tax.

 

If you were responsible for paying the employment tax for the corporation and the corporation does not pay the tax due, the IRS will charge you with a trust fund recovery penalty equal to 100% of the total tax due.

 

Any new corporations you start will not be responsible for any unpaid tax owed from other corporations you owned but the IRS can attach a tax lien against you and any shares or assets you own in other corporations.

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Expert: Marvin,EA
Pos. Feedback: 98.5 %
Accepts: 
Answered: 8/26/2009

Enrolled Agent

10 years self employed , Income Tax Preparation & Representation

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