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It would be difficult to do that without knowing if they made money and I presume they haven't filed personal returns either?
Hi Stephen I would appreciate any infromation you can give me
I have begun there book keeping and see that there will probably be a loss at the end of 2011...
they do not pay thereself a pay check but instead it appears to me they just split the net profit at the end of each week and take it as cash
There are penalties just for not filing the S-Corp returns even though those returns don't result in any tax due with them; just what is due with the personal returns.
they have not filed business or personal income tax for the last 4 years
what are the penalties
Well, let's put it this way, if they are taking money out of the S-Corp, based upon what they think the profit has been for the week, they will have some serious penalties to pay personally;
so they will be penalized and charged interest on there scorp for not filing and then be charged penalties and interest on there personal income?
are they required to pay thereselves a standard or resonable pay each week with txts withheld
and are these txs to be reported quarterly with the irs
The penalty for failure to file is 5% of the tax due for each month overdue to a maximum of 25%; failure to pay is 1/2 of 1% a month to a maximum of 25%, plus interest at varying rates until paid; those are the civil penalties on the personal returns;
If you are dealing with 4 years, there most likely are notices that have been ignored; which doesn't help matters;
You also have similar penalties for the state returns.
What were they thinking? Do they have any plausible reasons for not filing tax returns?
I havent found any notices but that is not to say they havent been filed i out going...I am just trying to figure out how to aproach him to let him know he needs to disolve and get this under control....I am under the impression that his net bill to the gov..will be in no less then in the 10s of thousands.
Well, let's put it this way; I wouldn't marry him.
they are just trying to make ends meet
I have no plans to
would it be a reasonable assumption to suggest that they liqufy this corp
That kind of money makes for giant problems; there are criminal penalties that could be assessed both the $ kind, which do happen quite often and worse, as I'm sure you can imagine.
ok so I think I get the gist
so even if they can get a fabulous accountant that is good with numbers
they are still in major hot water for not filing
You will need professional assistance with this; the sooner the better; get hooked up with a CPA ASAP
ok I will suggest that to him
I appreciate your time
should they retreive a tx lawyer
Don't even think of attempting this on your own; you can help the CPA get the numbers together, but the CPA will be able to make a judgment when or if it is necessary to seek legal assistance; probably won't need a tax lawyer, the CPA can handle most of that; at some point, they may need an attorney;
ok so that is my goal
But it could be to keep them in the civil arena;
Just tell him without a CPA, you aren't helping
I had no intention of doing any more then helping with the book work
but the more researched the more i think this is hopeless
Don't get yourself involved without professional assistance or you could wind up part of the problem rather than the solution
I am just trying to get ammo at this point in black and white to proove to him that something needs to be done
It isn't hopeless unless nothing is done;
this type of lifestyle will get him nowhere
love is blind but there is a limit when you have to question judgment;
I comepletely concur
it can have a lot of ramifications beyond taxes
I hear ya
how old are these guys?
Oh no, not good
with no reportable income or retirement plan
old enough to know better
I am a hairdresser working two jobs in two states and trying to save save save
what were they doing before this?
his wife took him for a ride in the divorce and he has had the f',;'., it attitude
I get it
yes he was an emloyee for a large comp
so now I am dealing with trying to get the puzzle back together
he has promise
Better find yourself a new boyfriend before you become victim #2
it just depends on if he can give up this sensless life style
he was the victim
You came here to me, so I'm looking at things from your standpoint too
I am totally capable and level headed
We all have been victims of one sort or another
will not give nor lend
will not marry
that attitude (his) only leads to disaster
for him & everything around him
but will take care of myself and depend on no one
just get him to a CPA or let him deal with it himself
you are very right
good luck, he might become less attractive from jail
I will give him this option....either you get serious or I will visit you in jail
I am not going to waste my time if he does not intend on following thru with this situation
and quite honestly I dont think he makes enough money to ever get caught up
really, why bother to visit; you can do better; you would be a real asset to the right guy
good luck, I'm here if you need more help
just ask for steve G
you have helped me considerably and confirmed my thoughts on this situation
Please remember to accept
again thank you and have a great day