Legal Question in Tax Law in California

Unpaid Corporation Taxes

I started a corporation in CA to protect a patent for a device I wanted to market. I paid the fee to start the corporation. No shares were ever dispersed. There are no corporate assets. There is no corporate activity. I wanted to dissolve the corporation because I didnt get the patent. My accountant said not to becuase you are required to personally accept responsibility for any fees. Since then (2000), I have not paid any corporation fees and I have not filed corporate taxes. I get notices and demands from the FTB but my accountant said to ignore them because although my name appears as the officer of the company, my social security number doesnt and the FTB cannot come after me personally. He has advised me to ignore the FTB demand letters.

As an honest citizen, I feel very uncomfortable about this and I would be willing to pay some amount (say 1 year's FTB franchise fee) to make this go away.

Should I contact an attorney or the FTB directly and arrange to pay a nominal amount? Or should I just ignore the letters and presume that they will eventually stop coming because I cannot be personally held liable for any back payments???

Please help!


Asked on 8/26/04, 11:52 pm

1 Answer from Attorneys

Joel Selik www.SelikLaw.com

Re: Unpaid Corporation Taxes

Get a new CPA or, better yet, a tax attorney in your area.

Read more
Answered on 8/27/04, 2:12 pm


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