Terry D EA Posted April 15, 2009 Report Share Posted April 15, 2009 I have a client, (friend of mine), who started a C-Corp in April of 05. No S-election, no tax returns filed, no annual reports filed, no stated corp filed, no taxes paid, crappy books, and guess what??????? He wants to catch everything up to date and do things right. I suggested possible dissolution as I told him he probably couldn't afford me to go back and create the financials and tax returns etc plus the failure to file and failure to pay penalties. I really like this guy but he is nuts! says he is ready to do this. I told him 5k up front and it would probably take me the better part of a year to finish and couldn't give him a final tab. Its not that I wouldn't like the fee attached to this, I am loathing the amount of work among other things. So, does anyone have an opinion on dissolution based on no income? My problem with that is he did have income plus expenses and it all went into his pocket. Any suggestions will be welcome on this one. Terry D. Quote Link to comment Share on other sites More sharing options...
joelgilb Posted April 15, 2009 Report Share Posted April 15, 2009 Follow the paper trail! And charge accordingly. Looks like the first year you may have a corporate return if he actually opened a corporate bank account and used it. As disorganized as he sounds he may not have. After that since the corp dissolved due to failure to file annual reports you can move him back to sched c. If he didn't open a corp bank account you may be able to treat all years as sched c and be able to file one zero initial and final corp return And remember the CPA and Attorney Motto: "I'm Billing Time!" and here is the legal version of this song. Couldn't find the accountants version. (Click "I'm Billing Time " Below) IM BILLING TIME Quote Link to comment Share on other sites More sharing options...
joelgilb Posted April 15, 2009 Report Share Posted April 15, 2009 btw A little know fact about the song I'm Billing Time Song was written and sung by The Bar & Grill Singers, available on their Grilling Me Softly CD (see their website at http://www.barandgrillsingers.com/home.html). The Bar & Grill Singers, all of whom are practicing attorneys in Austin, Texas, have entertained lawyers and non-lawyers since their 1991 debut in a one-performance musical revue (copied directly from their website). They have a number of other songs about lawyers, judges and the law. Much of it acapella. They have 3 CD's that can be purchased from Austin Bar Association at http://www.austinbar.org/pages/merchandise, which also has some other samples of their music Now you all can see that my clients have really pushed me over the edge this tax season! another song of theirs turned into a Youtube video: http://www.youtube.com/watch?v=zEkuORtuOlY Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted April 15, 2009 Author Report Share Posted April 15, 2009 I love that song!!!!! Yes, this guy did open a corporate bank account. Matter of fact, he used that account to pay me yesterday. But.... the check doesn't say INC at the end of the name. So, who knows. I do like your suggestions and will consider them once I meed with him next week. Somehow, he slipped through the cracks at the SOS office which apparently is a black hole instead of a crack because they show his business as active and not under suspension. Surprised me. Thanks, Terry D. Quote Link to comment Share on other sites More sharing options...
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