Discussion:Delinquent 941 Payments From Closed Business

From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.

From TaxAlmanac

Jump to: navigation, search

Discussion Forum Index --> Tax Questions --> Delinquent 941 Payments From Closed Business


Nightwing (talk|edits) said:

24 April 2007
I had a 21 year old business that failed in 2003. Everything was lost in foreclosure. There was one year where 941 payments were not made, although civil penalties were assessed and I paid them in full. Now, 4 years after the closure and 7 years after the 941 delinquency, the IRS is sending Intent To Levy notices to the old business PO box which I kept as a personal mailing address.

I was told by an IRS Field Agent that the civil penalties are all that the IRS can charge me and if the business fails, well, they can't go after what isn't there.

My question is can the IRS seek payment from me, in excess of the civil penalties, as the former CEO and owner of a defunct Sub-S Corp? Thank you for any advice.

Skasselea (talk|edits) said:

25 April 2007
Your only personal liability is the Trust Fund Recovery Penalty. Since you paid the Trust Fund Penalty, you have no exposure. Ignore the notices as they are for a defunct corporation and not for you.

Nightwing (talk|edits) said:

19 July 2007
Well, I did reply after I got that notice, just because I wanted to close the door. Below is the letter I sent:


April 25, 2007


Internal Revenue Service PO BOX 9019 Holtsville, NY 11742-9019

RE.: XXXX INC

       02-XXXXXXX
       Notice #CP504


Dear Sirs,

Please be advised of the following:


XXXX INC was closed on December 12, 2003.

I am the former owner of subject defunct company.

The business assets were sold that day at foreclosure by XXXXXXXXXXX Bank

The Corporation dissolved.

Civil Penalty Assessments on the 4 quarters in question were paid in full as agreed

The PO BOX XXXX was retained by me as my personal box, hence my response to you at this address.

XXXX INC no longer exists.


Very Truly Yours,


So, today I received another notice from the ACS Support claiming they never got a response and they said "PLEASE CALL US ABOUT YOUR OVERDUE TAXES OR TAX RETURNS" It is, of course, a form letter and it wasn't addressed to me in particular, just the defunct business name at the old PO box which I kept.

I am inclined to send a copy of the above letter again to the ACS location. I am concerned that they are still pursuing this and don't want to have my personal assets, small as they are, attached or otherwise seized.

Any suggestions? Thank You.

Kevinh5 (talk|edits) said:

19 July 2007
the business still owes the non-trust-fund taxes.

Did the corp file the Corporate Dissolution form?

Can you print out the state Secretary of State's website page showing the corp was terminated?

Nightwing (talk|edits) said:

19 July 2007
The corporation dissolved by not paying the state fees for renewal. I checked with the state about that and they said if I didn't pay, it would dissolve after a period of time..I think 2 years, or, I could pay a dissolution fee and have it dissolved immediately. I chose attrition. It does show on the state website that it is dissolved.

Nightwing (talk|edits) said:

19 July 2007
Just to be clear, the business is gone entirely and has been since December of 2003. I just checked the state website and it lists the corporation as "Administrative Dissolution in September of 2005."

Kevinh5 (talk|edits) said:

19 July 2007
There you go. Now re-read Steve Kassel's advice.

Blrgcpa (talk|edits) said:

19 July 2007
It states that penalties were paid. Were the trust fund taxes paid?

Death&Taxes (talk|edits) said:

19 July 2007
Civil penalties probably refer to the 'Trust Fund Penalties' or as it was called, the 100% Penalty....in other words the taxes withheld from the employees.

Nightwing (talk|edits) said:

19 July 2007
I believe that personally, I am in the clear since I did pay the Trust Fund Penalties in full. I just want to know how to stop the notices in my PO box. They keep adding penalties and interest and are billing a corporation that doesn't exist. Would it do any good to reply to the ACS with a copy of my previous letter?

AZIKEL (talk|edits) said:

19 July 2007
As we do in NY, either ignore the notices or place them right back in the outgoing mailbox stating 'NO SUCH ADDRESSEE' on the envelope. It will eventually stop. I would NOT recommend writing them any letters as this may indeed pique a RA attention in the local field office for no good reason.

Lots of Luck!

Kevinh5 (talk|edits) said:

19 July 2007
(another reason NOT to name your corporation after yourself: Nightwing, Inc.)

Death&Taxes (talk|edits) said:

19 July 2007
I think you continue sending that letter until this campaign ceases. Maybe use a marker to write "Please Read" on it. Nothing is going to happen because the corporation has no assets to seize.

If you get a third letter, keep sending.

Skasselea (talk|edits) said:

20 July 2007
I like Kevinh5's idea a lot. A whole lot. I also like Kevin's earlier suggestion to follow my advice.

To join in on this discussion, you must first log in.
Personal tools