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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10433
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I had closed a business in 2008 and owe corp taxes for 2007

Customer Question

I had closed a business in 2008 and owe corp taxes for 2007 and 2008 for $3436.51 and was corp s, they are pursuing with notices of collection. Am I responsible as an induvidule
Submitted: 2 months ago.
Category: Tax
Expert:  Lane replied 2 months ago.

Hi.

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If the business is a corporation or an LLC, and you followed the corporate aws of your state, and didn't commingle personal and corporate assets so that they can pierce the corporate veil under alter-ego theory (you might want to gogle that term), then no they cannot.

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A corporation, and an LLC which carries corporate liability porotection, when run correctly is a separate entity from it's owners.

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They CAn take the corporation itself, as the corporation is an asset, AND they can continue to require a tax fioing until you dissolve the corporation. But again if oyu did things right, a taxing authority cannot attach OTHER asses or income of the shareholder for rax debts of the corporation.

Expert:  Lane replied 2 months ago.

Please let me know if you have any questions at all, before you rate me

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If this has helped, and you DON’T have other questions … I'd appreciate a positive rating (using the stars or faces on your screen, and then clicking “submit").

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Thanks!

Lane


I have a law degree, with concentration in Tax Law, Estate law & Corporate law, an MBA, specialization in financial accounting & tax, a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986.

Customer: replied 2 months ago.
I didn't close out the corp correctly in 2008 by an over sight and I ended to let it dissolve because all the back fees they were going to assess on me. am I still ok and can this also apply to irs fees as well
Expert:  Lane replied 2 months ago.

On the first part that's fine (as long as you can see that it IS dissolved, they won't expect continued return filings)

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And as long, again, as ran things appropriately (kept that separate status) for the time the tax debt was created, they cannot successfully attach your personal assets or income.