S corp losses and taxes

Asked almost 2 years 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. 5

    Lawyers agree


    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

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

    If you do not like this answer or disagree, please look at one of the other answers provided. It is not necessary... more
  3. 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. 5

    Lawyers agree


    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

Related Topics

Small business s-corporation

An S corporation does not pay federal income taxes, instead passing its income, losses, deductions, and credits through to its shareholders.

Small business taxes

Small business taxes include state and federal income taxes and employment taxes, self-employment taxes, and excise taxes.

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