Tax Extensions
For haw may years can a company file extensions before they have to file their taxes? Also, how long can a company not pay on taxes owed or the penalties before something is done? If a company lost their corporate charter in 1997 but claimed corporate exemptions in 1998, 1999, and 2000, what could be the consequences? Thanks.
3 Answers from Attorneys
Re: Tax Extensions
It sounds as though you have a chronic non-filing problem. This kind of situation only gets worse with neglect. Consult an accountant as soon as possible to get the company's returns filed.
Exception to the above: if payroll, excise, or sales taxes have not been paid, then either a state or federal government might commence a criminal case; in such circumstances, you should engage a lawyer with criminal tax experience, who will probably retain an accountant to prepare the late returns -- this keeps the accountant's work protected under the attorney-client privilege. Accountants have no privilege in criminal cases.
Best wishes,
LDWG
Re: Tax Extensions
The IRS can start proceedings right away, or it may take a few years. If payroll taxes are not paid, they will hit faster and harder. Joel Selik, www.taxworkout.com
Re: Tax Extensions
If you are not filing returns, you are exposing yourself to criminal charges. The non-payment is a big factor in the IRS's or Maryland's determination of whether to prosecute. At the very least, you have a potential case for IRS or Maryland collection. We have a case where the taxpayer failed to file any returns i.e. corporate income returns, sales tax and withholding returns and taxes. Virginia filed 13 felony counts on the taxpayer that could put him in prison for up to a 120 years. Apparently, you missed all of the ads for the Maryland amnesty program. Now, the program is over. It is always better to have the returns filed before IRS or Maryland finds you. See a lawyer who handles criminal tax controversies before running off to an accountant to get your returns filed. www.irsequalizer.com