Have Tax Questions? Ask a Tax Expert for Answers ASAP
Hello, my name isXXXXX & I'll be helping you today. My goal is to give you a complete & accurate answer that you can understand.
Well, first of all forget trying to prepare & file any tax returns for the corporation. You don't have the information to either give to someone to prepare the returns or to even attempt to prepare the corporate returns yourself.
I wouldn't worry about not filing the returns by September 15. This is the husband's problem & it will eventually catch up with him.
If I were you, I would strongly recommend that you go to an Attorney to represent yourself & have him draft a resignation letter so you can formally resign as Treasurer. This is the only thing that makes any sense for you to do, despite your relationship with the wife.
This is accurate. My concern is that I have a legal responsibility to file.
There's nothing else you can do or be held responsible for. How & why were you made the Treasurer of this corporation.
What can the wife do at this point?
You don't have any responsibility to file anything if the circumstances are such that you don't control anything and have not been provided what is necessary to file tax returns. You didn't file them in the past, so whomever hired the tax preparer in the past should be doing the same thing this year.
The wife needs to get the advice of a divorce attorney and/or she should do the same thing I've advised you to do. The husband is the sole owner of the business & it is his responsibility. What she does depends upon what she is going to do about her marriage. You need to stay out of that & don't be giving her any advice.
The botXXXXX XXXXXne is that you need to formally extricate yourself from this situation. You should not do anything without your own legal counsel given the fact that the husband is threatening you with criminal charges. If he thinks a crime has been committed, he should be reporting it to the police.
Civil charges are different, criminal charges are rarely filed by individuals & I doubt the husband has the ability to do that anyway. No lawyer in his right mind is going to assist him in that regard. They'll just tell him to report the theft to the police.
If you did nothing wrong, you have nothing to worry about. However, as stated above, you really should get your own attorney and it will cost very little to have him prepare a formal resignation for you. Once the husband sees you have a lawyer, it is likely that he will just go away as far as you are concerned.
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Thank you for your comments.
The divorce attorney for the wife says that she has to file the taxes to cover her legally as she has the proxy for the company. The divorce attorney said that both she and I have a legal obligation to do so.
I did hire the CPA last year for the company.
However, the husband contacted him and told him not to give me any information.
The husband wrote me a letter and said that If I didn't file the taxes he would be pressing charges against me. From what you have said above, this is probably a bluff to get me to do his work???
He is retired homeland security/FBI.
I am the treasurer of his company as a favor because he has invested in my companies in the past.
I did not know him well and though he was a solid respectable citizen....FBI agent, so he should be trusted.
Unfortunately, most divorce attorneys aren't tax lawyers or CPAs. That's why I'm advising you to get your own attorney. The divorce attorney is wrong as far as you are concerned for the reasons I've stated above. He's got one client and it isn't you. You can't be held responsible for doing something you have no ability to do. I've seen these situations many times & believe me, the IRS will find out who is responsible & it won't be you. The husband is in for a rude awakening. You have nothing to worry about.
So, what about the wife? As acting President by proxy, is she legally liable for any penalties if the taxes are not filed?
How does he expect you to file the corporate tax returns if he won't provide the information he has & further, unless you are a tax accountant, you would be crazy to prepare any tax returns anyway.
The wife is another issue & she has to take the advice of her attorney in these circumstances. You need to worry about yourself, period.
This I am in agreement with. It has been a very difficult week trying to get things together. I understand that she has to take the advice of her attorney. However, for my peace of mind, I would like to know if she would have any responsibility or if it is still the husbands problem?
Would it be advisable for her to write to the IRS in this situation and give the details?
Explaining why the taxes could not be filed at this time.
She is not a US citizen, nor does she personally have any tax liability in the US. She has returned to her home country.
There are too many facts in question with respect to the wife and the husband & where everything stands. I would question whether the wife is legally the acting president despite a so-called "proxy". My advice to you is not to send any letters to the IRS. I'm not going to comment upon what the wife should do, particularly when you keep adding facts to the situation. The wife's situation is beyond the scope of your original question which relates to what you should do. The wife's situation, since she is his WIFE, is substantially more complicated than your situation.
Are you all set now as to my comments about your situation?
Thank you for your candor. I appreciate your commentary. I will post a new question on behalf of the wife as she is a dear friend who has sustained a lot of abuse. I would like to see her helped if possible.
I understand, but she has an attorney & it doesn't make sense for you or anyone else to be giving her advice under these circumstances. It just isn't smart for so many reasons. Be Careful.
Thank you again. I will be very careful. I intend to follow your advise and resign from the company.
Good luck, you have nothing to worry about.