Crusty old Corporate Tax

[TaxBird]

To save a long build up, I was recently forwarded an IRS notice for a C-Corp Civil Penalty that was administratively dissolved by the State in 1999. The owners, both C-Corps, are also long gone. Further, as far as I can tell, a final return, which should have been filed for 1998, was never filed.

I believe this CP derived from outstanding corporate taxes (not payroll related).

What would be the IRSs recourse in this case? I mean, what can they come after if the corp has no assets?

I don't even know where to begin to research this so any cites or pointers would be greatly appreciated.

Thank you in advance!

[BOB W]

What would be the IRSs recourse in this case? I mean, what can they come after if the corp has no assets?

I don't even know where to begin to research this so any cites or pointers would be greatly appreciated.

Thank you in advance!

IRS could look at the last filed return to determine Assets/net equity to see if the shareholders could of benefited personally for any final liquidating distributions and then chase them personally. Chances are it will die a slow death, but it depends on that last filed return.

[TaxBird]

IRS could look at the last filed return to determine Assets/net equity to see if the shareholders could of benefited personally for any final liquidating distributions and then chase them personally. Chances are it will die a slow death, but it depends on that last filed return.

Thanks Bob. I guess the responsible thing to do would be to get the PofA and find out directly from the IRS what was caused this. That will inform me as to whether or not they can pursue the individuals. Well, after I get my retainer, that is (This promises to be a mess).

[jainen]

?

Since neither the corporation nor the owners are anywhere to be found, who will sign the power of attorney?

[BOB W]

!!!!

Picky, Picky, Picky..................

[TaxBird]

Jainen

The individuals owners behind the corporate owners (owners of the corporate owners - officers all) are still around.

[Snaggletoof]

Strategy?

Some of the conversation creates more unanswered questions.

Why are you being asked to straighten out this mess? After 7 years of
not filing have the owners suddenly become responsibility-conscious of
filing their taxes?

[jainen]

A letter from the IRS

>>have the owners suddenly become responsibility-conscious<<

A letter from the IRS can sometimes have that effect. Usually it's the opposite effect, but the reaction (call the accountant) is the same either way.

[TaxBird]

More like, it was forgotten about until the IRS notice. This is a weird case because owner A (corporation) was supposed to prepare the final (1998) and owner B (corporation) was supposed to supply the information. Some attempt was made at resolution in 1999 but it was never completed. Owner B says it sent the information owner. A says it never received it. And there they sat until the IRS notice.

In the interim, people have changed positions and so the original players (staff of both corporations) are no longer available and the new people have no clue as to what went on beforehand.

While each is willing to pay their share of the principal outstanding each side is blaming the other for the resultant P&I.

In any case, the source of the CP is a mystery until I get the PofA because the 1997 1120 shows a refund due and there was no payroll in that year. I just thought maybe it would be a moot point if both the corporate owners were gone (no one to go after *if* the liability ended there).

Not that I'm complaining, mind you. I don't mind a mess as long as I get paid. And, if I may humbly say, thanks to my excellent organizational/investigative skills, I have eveything on who said what when.

Thanks everone.