Texas Taxes - Austin, We Have a Problem!
#IRS #Taxes #TexasComptroller
We're seeing a number of clients having problems with the Texas Comptrollers Office for state due on businesses that were shut down years ago.
While the taxpayer may have viewed the business as shut down, the Comptroller did not. What starts out small grows huge - if only our 401k's grew as fast. The scenario is something like this:
1. Business incorporates and obtains a sales tax permit.
2. Business goes kaput, is shut down, but corporation and sales permit stay active.
3. No reports filed - the Comptroller prepares substitute returns for a couple of years.
4. Taxpayer moves, ignores certified mail from the comptroller, summons, etc. Judgment is taken, including the substituted returns where no actual sales are made.
5. Taxpayer finds out about the judgment years later, after the debt has grown ten-fold.
6. Comptroller refuses to negotiate on the amount due, leaving you between a rock an a hard place - an not able to get that house or car you want because of the debt.
So what to do? First, terminate the sales tax permit, and be sure to file returns while you do have it, even if there is no sales. Second, terminate your entity according to the rules. Third, open that certified letter.
Have questions on taxes? Contact Tax Attorney Martin Cantu.
We're seeing a number of clients having problems with the Texas Comptrollers Office for state due on businesses that were shut down years ago.
While the taxpayer may have viewed the business as shut down, the Comptroller did not. What starts out small grows huge - if only our 401k's grew as fast. The scenario is something like this:
1. Business incorporates and obtains a sales tax permit.
2. Business goes kaput, is shut down, but corporation and sales permit stay active.
3. No reports filed - the Comptroller prepares substitute returns for a couple of years.
4. Taxpayer moves, ignores certified mail from the comptroller, summons, etc. Judgment is taken, including the substituted returns where no actual sales are made.
5. Taxpayer finds out about the judgment years later, after the debt has grown ten-fold.
6. Comptroller refuses to negotiate on the amount due, leaving you between a rock an a hard place - an not able to get that house or car you want because of the debt.
So what to do? First, terminate the sales tax permit, and be sure to file returns while you do have it, even if there is no sales. Second, terminate your entity according to the rules. Third, open that certified letter.
Have questions on taxes? Contact Tax Attorney Martin Cantu.