Can the IRS come after personal assets (lien on house, etc)if an S corp defaulted on paying 1000k in back taxes from 2009. Business was closed in Dec 2009.
Asked on 6/18/12, 2:38 pm
1 Answer from Attorneys
John DeLancett
Law Offices of John DeLancett, PL.
An S corp doesn't pay income taxes. The income passes through to its shareholders and is taxed personally to them. If they don't pay, then yes to all your questions. If the taxes are payroll taxes, then the IRS can assess the trust fund portion of those taxes as a penalty against responsible parties, typically officers and directors, but it can include shareholders and other employees. Again, if this is not paid, then yes to all your questions.
Answered on 6/18/12, 2:45 pm
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