2007-02-19 07:34:12 · 7 answers · asked by alianute 1 in Business & Finance ➔ Taxes ➔ United States
He just registered his bussines as a S Corp. in April 2006, but he had the bussines for total about 3 years. And in 2006 he maid a little bit of proffit.
2007-02-19 07:51:45 · update #1
Where can he go and do his taxes, i am going nuts here.
2007-02-19 07:54:06 · update #2
It depends on how much he owes. If he owes just a small amount, there might not even be a penalty.
He should see a CPA to get his taxes done at least once - after that he might be able to do them himself if he's comfortable with doing that, but having a CPA do them once will give him a pattern to follow.
There will be a return filed for the S-corp, then any profits will pass through to your personal return and be claimed there, so don't file your personal return until the S-corp one is done.
2007-02-19 13:37:43 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
Call a local CPA, sole practioner should work well. Ask others in the same line of business for referrals.
Everyone who said you'd go to Jail is WRONG. On the Federal level there is no tax for a S-corp. You, maybe, would have needed to pay INDIVIDUAL estimates, not coprorate estimates.
2007-02-19 08:00:45 · answer #2 · answered by smh60437 3 · 2⤊ 0⤋
You really need to give more information. How old is the company? Is it turning a profit? What type of corporation LLC, S-Corp etc. If it is a new business that has not turned a profit yet he is fine. If he has been in business several years and is not filing than that is a different story.
2007-02-19 07:38:38 · answer #3 · answered by Lily 7 · 1⤊ 1⤋
First of all, relax. Now, just do tax returns like normal. If the IRS thinks he should have made quarterly payments, he will get a letter from them where they explain how much extra he owes. It is generally based on interest rates.
2007-02-19 12:19:52 · answer #4 · answered by Ovrtaxed 4 · 0⤊ 0⤋
Probably not jail. Penalties and fines. Find an Enrolled Agent, someone who is licensed to represent the taxpayer before the IRS, and they can address this with the IRS. They don't want a lb. of flesh, just cash.
2007-02-19 07:38:31 · answer #5 · answered by Amy V 4 · 1⤊ 3⤋
He will have to pay the tax, a penalty, and interest.
It may be a lot of money if he owes a lot. However, the IRS will often make a deal.
It only gets worse the longer he waits.
2007-02-19 07:37:49 · answer #6 · answered by FCabanski 5 · 0⤊ 3⤋
Probably jail.
Being late once is one thing. He would get penalties and interest for that. But not paying deliberately 4 times in a row is deliberate fraud. That gets you jail time.
2007-02-19 07:37:08 · answer #7 · answered by Lisa A 7 · 0⤊ 6⤋