CA S Corp tax issue

Status
Not open for further replies.

ljb95

New Member
My CA S corp owes back fed and state payroll taxes. The state EDD has now filed a lien against my personal assets (personal, non biz bank acct). Is this legal? I thought that by having a corp they could only come after the assets of the corp, not my personal assets. Any advice on how I should proceed?

Thanks
 
An S Corporation is small. I'm curious. How many shareholders do you have? In many instances, the corporation is just a legal fiction for an individual behind it all. If the individual responsible for filing the taxes doesn't do so (but does pay himself from the payroll), then they are just following the money trail. I don't know exactly what section of law the state has been able to use but you need to know that corporations are not an ultimate shield - there is a concept called "piercing the corporate veil" which does happen in certain circumstances.
 
Status
Not open for further replies.
Back
Top