Discussion:California dissolution question (katiej, if you can answer this)

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Discussion Forum Index --> Advanced Tax Questions --> California dissolution question (katiej, if you can answer this)

Discussion Forum Index --> Tax Questions --> California dissolution question (katiej, if you can answer this)

Eric1032 (talk|edits) said:

17 March 2009
for the california tax people, if anyone can shed the light on this:

for example, a client has a corporation that has faild to file tax return for the past three years, now in suspended mode. the proper way to dissolve this corportion is to revive it, file all delinquent tax return, pay all the taxes owed and penalty and interest, file dissolution paper with Secretar of State.

from my discussion with couple other cpas, they suggest to do nothing, let the state keep sending notices and eventually they will stop.

i kinda believe them because couple of my clients went belly up 4 or 5 years ago, they just walked away against my advice that they should pay the min tax of 800 and file final return.....nothing has happened to them since.

i am not here to ask to how to safely break the law...i will continue to advice my client to do the right thing. but just curious what you guys think?


Wonder Woman USA (talk|edits) said:

18 March 2009
Find a colleague with a subscription to Spidell's tax newsletter; they have discussed this within the past year; the process has changed since I last worked on dissolving corps.

Riley2 (talk|edits) said:

18 March 2009
Sometimes the FTB gives up and other times they go after any shareholder who received distributions from the corporation. Take a look at the Ralite case.

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