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Corporation not in business for 5 years -- do we owe corporate taxes?
East Meadow, NY
Viewed 38 times.
Posted about 1 month ago in Tax
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My husband an owner operated (no employees) construction business that we incorporated in 2003. We never made any real money, but filed the state tax returns until 2005, when we notified New York state that we were no longer doing business and my husband was getting a job. The state tax people wrote back and told us they would take us off the rolls. Just a month ago we received notice that we have failed to pay corporate taxes for this year and when I called to tell them we haven't done business in years, they told me I needed to dissolve the corporation and pay 3 or 4 years in corporate taxes. I spoke to my accountant and they told me NY state would eventually close the corp. by proclamation and not to worry about any of it. Can we be personally liable? Should I worry?
Answers (1)Ellen A. Victor
This attorney is licensed in New York.
Posted about 1 month ago.
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If you are not "doing business" in New York, you are not subject to the franchise tax. Doing business could be construed as maintaining a business checking account.or making or receiving payments. You should ensure that you did not do any business in the year in which you stopped paying franchise taxes. This would include 2005.
Disclaimer: Please note that this answer does not constitute legal advice, and should not be relied on, since each situation is fact specific, and it is impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue. This answer does not create an attorney-client relationship. |