S-Corp (calendar year) fails to file 2012 return & Final return. S-Corp has no money to pay for penalties and its my understanding the IRS CANNOT come after the shareholders, correct?
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That's my understanding as well. However, someone raised an interesting question either on another thread or another forum (I don't remember which). They suggested that if there were distributions of cash and/or other assets to the shareholders when the corp shut down, the IRS might still be able to collect the penalties from them. I've never seen that anywhere else, but I suppose it could be true."The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith -
1120S penalty
If the owners took cash or assets of the company as part of the liquidation they can be held liable as transferees under IRC 6901Comment
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