Created corp. in 1998. No business conducted in any way after 2000. Former accountant called IRS to stop demand letters and they said write a letter (about assets) stating that all the assets were sold and the corp no longer was conducting or connected to any business or income as of the end of 2000. Wrote the letter and the letters stopped until 2008 when out of the blue the IRS is now demanding payment on tax period 9/30/01. The corp was defunct at that time and the letter stated that. Now what? Interest is being added and apparently they are disregarding my previous arrangement made by my accountant when they requested the letter. Now it seems if I pay for this period they will then want payment for every quarter after that until the present even though the corp is non-existent and it can be proven has no assets and no business of any sort since 2000. How do I deal with this even though I have never legally closed the corp.
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Corporate Law Corporation defunct but IRS still demanding payments
- Thread Starter grb4
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fredrikklaw
Moderator
Dissolve, surrender, or cancel!
It is not enough to keep declaring your corp "defunct" if you have no intention of doing business under the corporation's name and wish to stop receiving tax demands from California's Franchise Tax Board or the Internal Revenue Service (or both).
To close down a corporate entity in California, you have to either, dissolve, surrender, or cancel it by filing with the secretary of state a Certificate of Election to Wind Up and Dissolve as well as a Certificate of Dissolution.
You have also overlooked the fact that you informed I.R.S. of sale of your corporation's assets, and the proceeds from sale of assets, even when going out of business, are still considered as earnings and therefore taxable.
fredrikklaw
It is not enough to keep declaring your corp "defunct" if you have no intention of doing business under the corporation's name and wish to stop receiving tax demands from California's Franchise Tax Board or the Internal Revenue Service (or both).
To close down a corporate entity in California, you have to either, dissolve, surrender, or cancel it by filing with the secretary of state a Certificate of Election to Wind Up and Dissolve as well as a Certificate of Dissolution.
You have also overlooked the fact that you informed I.R.S. of sale of your corporation's assets, and the proceeds from sale of assets, even when going out of business, are still considered as earnings and therefore taxable.
fredrikklaw
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