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S corp losses and taxes

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.

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Attorney answers 4


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 only be provided after consultation by an attorney licensed in your jurisdiction. The answer to question does not create an attorney-client relationship or otherwise require further consultation. Mr. Smith is licensed to practice law throughout the state of California with offices in Los Angeles County. He is authorized to handle IRS matters throughout the United States, and is also licensed to practice before the United States Tax Court. His phone number is 323-292-4116 or his email address is


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, my answer does not create an attorney-client relationship and I cannot be held responsible for how you, the asker, use the information provided. If you want to contact me directly and retain my services you may through my listing on this site or at 248-901-0750 or


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 for you to try prove this answer is "wrong" or something with which you do not agree. This is a free service for you based on limited facts. Nevertheless, many times you need to consult an attorney with the details to get actual advice specific to your concerns. Do not put too many details in your questions or comments because this makes the information public and could hurt you. Government Regulations contained in IRS Circular 230 regulate written communications about Federal tax matters, including e-mail, between us and our clients. This is another attempt by the government to limit your rights and to extend the control of government over individuals and businesses. Nevertheless, such communications are either opinions or other written communications. This is not an opinion. It is other written communication and was not written to be relied upon, by itself, to avoid any tax penalties. In order to receive assurances of protection from tax penalties from a written communication, you should get an opinion letter. If you would like to discuss an opinion letter relating to any matter, please contact me and I will explain what is involved and what it will cost.


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 714-708-2593 Mr. Lively is a Certified Tax Specialist by the State Bar of California Board of Legal Specialization. He can be reached at 714-708-2593 or individual seeking legal advice for their own situation should retain their own legal counsel as this response provides information that is general in nature and not specific to any person's unique situation. Circular 230 Disclaimer - Advice given in this response cannot be used to eliminate penalties with the IRS or any other governmental agency.

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