Vityaba Posted November 20, 2014 Report Share Posted November 20, 2014 One of my clients corporation was dissolved a few years ago because of non payment of corp. annual franchise tax. My client was still doing business under the corporate name and was filing all required taxed. All of a sudden he received the attached letter in the mail a few days ago. This is not the only client with dissolved corporation that keeps doing business and filing federal and state taxes under dissolved corp name. Some of my clients have been doing that for many years and did not have any issues. No one really care about their status unless they apply for a loan or try opening a new bank account. I am wondering if IL SOS started a new program where they now do a cross check with the IRS or IL Dept. of Revenue to find these "active" corporations? Anyone else received the same letter? doc 1.pdf Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted November 20, 2014 Report Share Posted November 20, 2014 Yes first time I every see this, but if a business is active in the state of IL and has not paid the annual fee, then the notice is appropriate. I have help countless clients reinstate their IL corporation because they forgot to file. Once an SOS agent told my client if he didn't want to reinstate his LLC, that it was okay just to create a new LLC with the same name, and he did. I sent you a PM Quote Link to comment Share on other sites More sharing options...
Vityaba Posted November 21, 2014 Author Report Share Posted November 21, 2014 I've reinstated numerous corporations, but some people just do not want to pay reinstatement fees and wait until someone makes them do so. I do not think the SOS will allow a new corp with the same name if the registered agent and/or the incorporator is the same as for the dissolved corp Quote Link to comment Share on other sites More sharing options...
mircpa Posted November 21, 2014 Report Share Posted November 21, 2014 Lately IL might have started what most of other states are doing, they are enquiring with respective state's tax authorities to figure out if these corporations are still doing business. I dont know if you can retroactively file annual reports and reinstatement at this point. Probably based on answers from this interogatory they might judgment against this corporation to stop doing business. Quote Link to comment Share on other sites More sharing options...
Bart Posted November 21, 2014 Report Share Posted November 21, 2014 One of my clients corporation was dissolved a few years ago because of non payment of corp. annual franchise tax. No one really care about their status unless they apply for a loan or try opening a new bank account. They will also care if someone brings a legal action against them. Since the corporation is not in good standing it cannot be sued. The shareholders will be sued personally. Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted November 21, 2014 Report Share Posted November 21, 2014 They will also care if someone brings a legal action against them. Since the corporation is not in good standing it cannot be sued. The shareholders will be sued personally. Same happens for payroll taxes, the shareholders are on the hook. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted November 21, 2014 Report Share Posted November 21, 2014 Several years back, I had this issue come up with a new client. He got a letter from Arkansas, we were able to get his Corp reinstated, basically just by filing and paying the back taxes. After that I started checking the SOS Website each Dec, making a list of any clients with franchise tax issues, so we could get that corrected. One great thing about ATX is that they have all those forms included. It's extra income for the preparer as well as better service to the clients. Quote Link to comment Share on other sites More sharing options...
Vityaba Posted December 1, 2014 Author Report Share Posted December 1, 2014 This bus. owner recently filed an annual report for a LLC where this corp. is a new member. I think most like this has triggered that letter from the SOS. Quote Link to comment Share on other sites More sharing options...
Catherine Posted December 1, 2014 Report Share Posted December 1, 2014 MA - while backwards in many respects - allows filing of back annual reports. Quote Link to comment Share on other sites More sharing options...
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