S corp losses and taxes

Asked over 1 year ago - Concord, CA

i have an s-corp for software consulting revenue, contributor myself. i ran payroll for x amount of money and paid personal taxes, remaining company money i invested in another business from my personal account, not company account. i lost all the investment and can not pay taxes now.

what are my tax implications, how can i tell irs i can not afford to pay company taxes now.

Attorney answers (4)

  1. Phillip Monroe Smith

    Contributor Level 18

    5

    Lawyers agree

    1

    Answered . Your questions is a bit vague. What company taxes are you referring to? You cannot avoid paying the trust fund portion of payroll taxes, and S Corps. usually are not liable for income tax.

    Good luck!
    Phillip M. Smith Jr.
    Los Angeles Tax & Business Attorney
    Licensed in the United States Tax Court
    www.culvercitytaxandbusinesslaw.com
    www.corporateattorney.com
    www.worlclasslawyers.com

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

    Pro

    Contributor Level 16

    7

    Lawyers agree

    Answered . Please consult a tax attorney. If you owe payroll taxes, you will be personal liable for the trust fund amount. Please make sure you file timely (it is already late, but file ASAP to avoid further late filing penalties.)

    Good luck!

    Ron Cappuccio
    www.TaxEsq.com

    If you do not like this answer or disagree, please look at one of the other answers provided. It is not necessary... more
  3. Henry Daniel Lively

    Contributor Level 20

    5

    Lawyers agree

    Answered . Your situation should be reviewed by a tax professional to determine what your options are at this point and where you are at procedurally with the IRS. The best approach is usually to hit this head on and not ignore it. If you are interested I offer a free one hour consultation. Give me a call or post a message here or on my website.

    H. Daniel Lively, Esq., LL.M., CPA Certified Tax Specialist, CA Board of Legal Specialization dlively@... more
  4. James T. Weiner

    Contributor Level 15

    5

    Lawyers agree

    1

    Answered . Generally if they were true business investment loses then the S Corp income may be zero out and you may not owe any taxes.

    Please contact a good tax accountant/CPA to be sure.

    Otherwise you will pay over time plus penalties.

    Please note that I answered this question with general knowlege of the law and with limited disclosure from you,... more

Can't find what you're looking for? Ask a Lawyer

Get free answers from experienced attorneys.

 

Ask now

26,161 answers this week

2,916 attorneys answering

Ask a Lawyer

Get answers from top-rated lawyers.

  • It's FREE
  • It's easy
  • It's anonymous

26,161 answers this week

2,916 attorneys answering