If a person knows he owes a lot of back taxes for a now defunct business (10 years ago) and hasn't filed since (personal or the business, but doesn't owe for most years, just the business amount), what is the best way to go about getting things legal and straight? What are the fines/penalties imposed in this situation?
Answer:
I used to work for the United States IRS. I figure my answer may apply somewhat to your situation. I don't know if my answer will help, but who knows?
First off, in the US a lot depends on if the business was a corporation, or a sole proprietership or partnership. Corporate entities are separate from personal entities. However, in the US, if certain corporate taxes aren't paid (payroll taxes), you're liable for a portion of that. If it was a sole proprietership or partnership, you could be held liable.
However, in the US there is a 10 year statute of limitations on tax collection. Check with the Australian tax authorities on their statute. If you were in the US and made it past the 10 year mark, that's a bit like crossing the finish line in a marathon (in most cases).
Other Questions and Answers:i just turned 18 and want to know which credit card would be best to choose.?
Does anyone know about AMT(alternative minimum tax)I have been audited and I think that is the issue??
Paying taxes.I don't get it?
i want to know if my husband who livees in florida is still claiming me on his tax returns?
Calculate percentage increase of a stock value?
When you change the name of an LLC do you have to report that change to the IRS?
what's the difference between an accountant and a chartered accountant?
Can someone please provide an example of the different tax benefits of an LLC, S Corporation, and C Corp?