I would like close my C Corporation which has an existing $10,000 tax liability and no assets. If I close the corporation, will the IRS go after just the corporation or me too?

ANSWER

Expert Todd Alexander's Answer:

In general, the IRS will have no recourse beyond the assets of the corporation, unless:

1. It is treated as a disregarded entity.

2. The IRS pierces the corporate veil because the corporation and the shareholder(s) finances have not been segregated..

3. The taxes due are Trust Fund Recovery Penalty assessments, that is employment taxes due and are deemed a responsible person.

Todd Alexander, CPA

California

20 yrs experience

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31 Ans.