I have owned my business for 4 yrs and never paid taxes, nor have I paid my personal taxes for the past 8 yrs. What do I do?

San Antonio, TX Viewed 148 times. Posted 2 months ago in Tax

I'm also in the process of forming a non profit orginization but I'm afraid by submitting the application I will "red flag" myself to the IRS, so I really wanted to get all my tax stuff in order first. I just don't know where to begin. When I opened my business the money was only enough to barely sustain the business and me. Now it seems with the economy I'm back in the same boat. Any advice would be helpful. Thank you

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Answers (3)

Steve Fromm

This attorney is licensed in Pennsylvania. Posted 2 months ago.

You need to immediately file your individual tax returns. However, if your business is operated as an S corporation you need to file them before you can file your individual tax returns for the 4 years in question.
With this history of non-filing, your behavior could be construed by the IRS as tax fraud. The penalties could be quite severe.
This should be a wake up call to you to get on top of this matter before the IRS catches up to you.
If the IRS catches you before you file your taxes, you will have huge problems and will have to hire tax counsel, and incur some really severe penalties.

LEGAL DISCLAIMER
Mr. Fromm is licensed to practice law in PA. The response herein is not legal advice and does not create an attorney/ client relationship. The response is in the form of legal education and is intended to provide general information about the matter within the question. Oftentimes the question does not include significant and important facts and timelines that if known could significantly change the reply unsuitable. Mr. Fromm strongly advises the questioner to confer with an attorney in their state in order to ensure proper advice is received.

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Mark L Rosenberg

This attorney is licensed in Dist. of Columbia and 1 other state. Posted 2 months ago.

It is critical that you get all past due returns filed as soon as possible. If the books are not in order to do so, you should get them in condition to file the returns. If the business did not make a profit, then your tax liability will be small, but you must get returns filed to avoid severe penalties.

Mark L. Rosenberg

Jonathan H Levy

This attorney is licensed in California and 1 other state. Posted about 1 month ago.

These are really two unrelated issues. Of course you need to clean up the tax mess. On the other hand simply incorporating as a non profit corporation with the state will not red flag anything with the IRS. If however you try to file for 501(c)(3) status with the IRS, that indeed would be a risky move.