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Tax help plz

Discussion in 'Business & Tax Advice' started by doedill, Aug 16, 2010.

  1. doedill

    doedill Newbie

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    I just got a letter from irs stating I own xxx amount plus interest & penalties. It's a corp. account but I haven't done any business for that year, nor earn any income and haven't filed a return. what should I do, I don't believe I own them anything, but how do I prove it?
     
  2. volund

    volund Senior Member

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    While I am a big advocate of doing as much of your own tax work as you can once you start getting letters from the irs that include penalties you probably are going to need help.

    First thing is contact the irs and explain that the corp was not active and did not have any income for that time period. If they give you an easy way to fix things such as filing a return for that period than you are good to go. If you get any other response then you really need to contact a local tax attorney.


    Whatever you do, do not ignore the letter. The irs does not play nice when they get ignored and you do not want to wake up one morning with all your accounts frozen.
     
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  3. Crixus

    Crixus Regular Member

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    You probably want to get some advice from a CPA. I'm not sure what the fees and penalties are for, but you may be required to file something if your corp has not been dissolved.

    A CPA will know what is going on and if they have made a mistake. Also having the CPA respond for you will probably be helpful.
     
  4. currentcover

    currentcover Registered Member

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    you still got to pay a penatly. i had to do the same thing. even though we all know you had to make something or spend something on the biz. no bothers tho just pay the penatly it should be 50 bucks but varies from state to state.
     
  5. BorisTipsIt

    BorisTipsIt Regular Member

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    Talk to a CPA. Usually, you have to file and pay a "failure to file" penalty even though you don't owe anything. You will probably hear from the state as well.
     
  6. doedill

    doedill Newbie

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    called them and said I haven't done any business for that year. they said just to file out the return and make it final. no mention of any payment (yet) hopefully this is the end of it.
     
  7. teeniegenie

    teeniegenie Supreme Member

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    Even if you truly have not done any work through the corp (i.e., you haven't earned any income through it), you need to always do an "informational return" showing all zeroes on page 1 just to keep the IRS informed. Good move to call the IRS first and talk with them. The the penalties and interest on $0 income = $0! However, if you get the least bit indication that the IRS is going to push the issue or not stick to what they told you over the phone, get a CPA - don't go at it alone!!!
     
  8. ecraigzon

    ecraigzon Junior Member

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    Who needs to know?!?!?
    CPA is the way to go, taxmasters and the like know what they are doing (but they aren't free)