I had an S-Corp that I terminated in 2007, Went through a CPA and tried to do things right, So I was shocked to find out that I have a state tax lien show up on my personal credit report, Am I personally liable for this? It shows the entity name on the credit report.
I'm an Illinois lawyer, with no special knowledge of Oklahoma law. Since S corporations, generally speaking, only file information returns and pay no corporate taxes, its hard to understand how there could even be a State tax in this situation, much less one you have charged against yourself personally. Here are some possibilities:
Oklahoma may have a separate tax on corporations beside a regular income tax. Illinois has such a tax, so an S corp. here would pay State tax even though it pays no Federal tax.
Or the liability could be for some other type of tax, such as sales tax, or unemployment tax. Here in Illinois, persons in control of a corporation which fails to deduct and remit withheld taxes from employees (so called "trust fund taxes") have personal liability. They also have liability for unpaid sales taxes and unemployment taxes. There may be other taxes for which an owner would be personally responsible.
Why don't you start with the CPA you engaged to file your final returns and see if you can get an explanation. CPAs, like lawyer, deal with taxing agencies, and if there is a mistake, or an opportunity to remove this liability, perhaps your CPA can help. Otherwise a local attorney familiar with tax matters would be my recommendation.
Answering your question on AVVO, does not create a lawyer-client relationship between us. I practice in Illinois and am not familiar with Oklahoma taxes.
Please be specific regarding the type of tax. Sales tax? Employee withholding? A corporate level tax? Unemployment tax? You need to be much more specific in order for anyone to assist you. Also, how much is the tax?
Marty Davidoff, [email protected], 732-274-1600. This answer is provided for general information only. You should seek advice from an attorney or tax professional.
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