Can IRS audit 2009 tax return of an S-Corporation that has been formally dissolved in 2011?

Asked about 2 years ago - Los Angeles, CA

s-corporation had depreciated some of it's assets under IRC 179 in 2008, however, the depreciation amount was disallowed in 2008, and was carried over 2009 which was passed thru the personal return of its shareholder. Now IRS is auding the 2009 return for both the s-corporation and its shareholder for the depreciation. The s - corporation has been formaly dissolved in 2011 and has been non-operational since then. The 3-year SOL for 2009 tax assessment run out in Dec 2012. I am looking for some advice from a tax attorney.

Attorney answers (3)

  1. Phillip Monroe Smith

    Contributor Level 18


    Lawyers agree

    Answered . Attorney Fromm is correct. You can be audited for 2009 until 2013. The dissolution of a corporation does not prevent the 2009 returns from being audited.

    Good luck!
    Phillip M. Smith Jr.
    Los Angeles Tax & Business Attorney
    Licensed in the United States Tax Court
    Call: 323-292-4116 or 562-505-1004

    THESE COMMENTS ARE NOT LEGAL ADVICE. They are provided for informational purposes only. Actual legal advice can... more
  2. Steven J. Fromm

    Contributor Level 20


    Lawyers agree

    Answered . They can audit the S corporation even if dissolved. And the statute is 3 years from the date of filing assuming a calendar year S corporation. So for 2009 the due date is March 15, 2010, so the statute expires March15, 2013.

    You need to think long and hard about your choices here both from a tax and non-tax perspective. He pays nothing toward a child he fathered? Try to project yourself in his ex-wife's position. How would you feel about him not providing support to your child?
    As for the taxes, if you file a joint return your refund is fair game. If you file married filing separately then you will pay more in taxes (or end of with less of a refund if you overwithheld.)

    Hope this helps.

    Please remember to designate a best answer to your question.

    Mr. Fromm is licensed to practice law throughout the state of PA with offices in Philadelphia and Montgomery Counties. He is authorized to handle IRS matters throughout the United States. His phone number is 215-735-2336 or his email address is , his website for more tax, estate and business articles is

    LEGAL DISCLAIMER Mr. Fromm is licensed to practice law throughout the state of PA with offices in Philadelphia... more
  3. Dana Whitney Atchley

    Contributor Level 16


    Lawyers agree

    Answered . What sort of advice are you looking for?

    My answer does not constitute legal advice and may not be relied upon by anyone for any purpose and does not... more

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