Can the IRS go after us personally for penalties and interest for tax return with LLC?: We have an LLC that is out of business. The IRS says we owe $2400 in penalties for late filing. We do not owe any tax debt other than penalties and interest. Can the IRS go after us personally for the fees?
Michael’s answer: The short answer is yes. The IRS can seek to recover from personal assets but only after they have sought to recover from the company. To adequately respond to the question more facts will be needed. Is the IRS seeking to recover or the Alabama Department of Revenue? When you state the company is out of business, does that mean that the LLC was dissolved? Please understand that closing a business or dissolving an LLC does not eliminate an obligation that was owed at the time of dissolution or closing. You have a period of winding up where all of the final business obligations can conclude so that there are no liabilities like this one outstanding. The IRS must have been sending notices to the company address and likely your home address. This can be resolved through discussion with the IRS but generally once the debt has been declared 100% by the IRS it is very difficult if not impossible to negotiate. It is always worth attempting through discussion with the IRS but it is never good to ignore. Hope this helps you.
If both parties to a contract agree that it's valid but one party thinks it's unfair, can s/he sue to try to get around it?: If one of the parties doesn't want to comply with the contract they signed because circumstances didn't turn out as they expected and they're now unhappy with the contract, is it common to sue and try to make a legal argument to get around it to say that the contract says something it doesn't?
Michael’s answer: It is difficult to provide a complete answer without viewing the contract or even knowing what the parties contracted to do. Generally, a party must honor a contract unless circumstances change which make honoring the contract impossible or impractical. Have the contract reviewed by an attorney and you can have assurances of your rights.
What do I have to do to legally terminate my lease agreement as a tenant if the environment is unsafe: I want to terminate my lease agreement due to illegal drug activity and a lack of absence of my landlord. In my residential lease, it states that I am able to have a sub letter if written consent is given by the landlord. I spoke with the landlord and she stated verbally that she would only give consent if one of the tenants mom approves. I need to leave the home immediately due to illegal drug abuse that I have already reported to the landlord and also due to a hostile living environment which was caused by providing the said information to the land lord
Michael’s answer: There is a remedy for a tenant in these situations, however, you need to follow very specific notice requirements or you may be barred from terminating your lease. It is important to take your lease to an attorney and have them review same to make a well informed decision. Best of luck.