Legal Question in Business Law in Missouri

unemployment taxes for corporations

In 1994, my brother and I formed a corporation. For various reasons, that corporation ended after only 1 year. We owed a considerable amount of unemployment taxes. After the dissolution of the corp., my brother stopped working. I formed my own company.I am no longer in business-in fact, I am unemployed. My brother died in 1998. The state is now insisting that I pay those taxes. Am I responsible?


Asked on 3/01/01, 12:24 pm

1 Answer from Attorneys
Alan Crone Crone & McEvoy, PLC

Re: unemployment taxes for corporations

Unfortunately there is a great risk you may be personally liable for those taxes. They are what the service calls "trust fund" taxes. The Code gives the IRS very broad powers to collect those taxes. In some circumstances they can go beyond the corporate shield to collect. Not in all cases however. That depends on a variety of circumstances. I suggest you go see an attorney quickly who can help you out of this if the amount is material to you.

If I can be of further assistance to you, please do not hesitate to call me 901.527.5522 or e-mail me. Good Luck.

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Answered on 4/25/01, 12:09 pm


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