The IRS Audit Blog

Posts Tagged ‘tax attorney’

Question: How do I know if I am legally shielded from my small business Sub S corporation?

This is a followup to a previous question. I’ve got a sub S corporation for a small business that I’ve kept established with Florida state for years. Recently, the Yellow Pages has instigated a lawsuit against my company for a bogus debt they claim I owe. The company is very small – basically just me. I do file and pay the annual “report” for the corp. Also, I keep expenses/income reasonably separate with a merchant and checking acct in corp name. However, I do make purchases, transfers, etc. from the corp accts to my personal. I haven’t yet “paid myself a salary” on income tax (I know I should). However, all I want to know at this point is could this creditor realistically go after my last savings held in a personal saving acct? I’ve had that money saved up for years before this hapenned. Thanks for any tips as I can’t get entirely straight answers from attorneys I have paid.

Answer: Yellow pages cannot go after your personal savings if they are filing against your business. They can only file against your business.

Second, you are going to get audited for doing the practices you are doing. You are illegally taking personal money out of your business account. You have to pay yourself and not continue these practices. If the IRS looks into this they will audit you and find out there’s more years to audit you still. You’ll end up owing the feds tons of money for these types of practices.

Do not pay your personal stuff out of your business account, you’ll get caught eventually.

If these yellow pages are starting a lawsuit, great. Let them. They have to prove that you agree’d to their services, they have to prove you are liable for the money they are claiming. All of it rests on them to prove you owe them. They need to prove that they provided a service that you agree’d to pay for. Should be easy to prove that you did nothing of the sort and you should be free and clear from this.

When it comes to debt collectors, you can send in a written statement that this service was never agree’d upon and that you had no idea of it until long after they claimed it. You have the legal right to ask them to attach your letter to this debt, so that anyone bringing up your credit sees it right away. I know it has to be written within so many words, so you need to find the guidelines there. I’d do that part immediately!

Lastly, why pay all the extra for a corp if you really aren’t running your business like one? Why not just work off of your social security number instead? It would save you quite a bit of money every year and you could pay your personal bills and your business ones out of the same account legally, instead of illegally like you are now. Really makes little sense for you to have an S corp under your circumstances. I can’t see paying thousands of dollars worth of fines if the IRS gets their claws into you just so you can buy toilet paper or groceries out of your business account.

Back to your main question. Personal and business cannot be legally tied together. If i file bankruptcy on my business, the money won’t be able to be taken from my personal account. I have a feeling, with the way you are doing your bank accounts, that’s why the lawyers aren’t helping you. They see you doing things illegally and don’t want much of a part of it and won’t give solid advice due to it. If they did, they could be liable as well. If i heard you robbed a bank, from your own lips, and didn’t go to the police, i could be charged with accessory. This is why you aren’t getting good help or good legal advice. With the way you are doing things, your s corp cannot protect you as well as it could have if you were doing things legally.

If this company files to go through your records, which it could have a right to do in a lawsuit, it could easily prove you fraudulent there. Which would almost ensure you looking guilty in other fields as well. Like finding out your 20 is missing and knowing there’s someone who was once picked up for shop lifting. You’d accuse them and believe it because you could prove they once stole before.

Your business practices are fraudulent with the way you pay for things. It’s easy to “pay” yourself instead and put the money into a personal account then it is to do it the way you are doing it. You can pay yourself as often as you need so that your stuff is paid for. If you have too, get a personal American Express card that has to be paid off at the end of every 30 days. Then buy all your stuff on it and then pay it off at the end of every month with one large check to yourself in that exact amount.

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Full text and selected excerpts of Judge Roger Vinson’s federal court decision declaring the new healthcare law unconstitutional.

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Question: Tax Attorney in Florida Reccomendations needed!?

Dear Friends,

I plan to hire a Tax Attorney or Criminal Defense Attorney with expertise in Tax Law in order to meet with an IRS Criminal Investigation Officer, since my friend was requested by this officer to meet him in his office.

Any recommendation of experienced attorney in Florida, preferably in Miami area, will be greatly appreciated.

Kevin

Answer: I don’t have a true reference, but I just went and searched on “tax attroney miami florida” and here are the results.

http://www.google.com/search?sourceid=navclient&ie=UTF-8&rls=DAUS,DAUS:2006-11,DAUS:en&q=tax+attorney+miami+florida

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Jerry Brown to be Sworn in as CA Gov.

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