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California Corporation Franchise Tax Due Issues?
Posted by admin on Dec 12th, 2008
southern Ca asked:
The company is a C Corporation and they were not in operation since 2004. They did not file their tax return since 2004 due to no activity but they are still liable for the $800 minimum tax each year. Now the FTB going to suspend the company due to unpaid taxes. What’s going to happen if the president of the company decide to walk away from the corporation, will California Franchise Tax Board go after him as individual?
The company is a C Corporation and they were not in operation since 2004. They did not file their tax return since 2004 due to no activity but they are still liable for the $800 minimum tax each year. Now the FTB going to suspend the company due to unpaid taxes. What’s going to happen if the president of the company decide to walk away from the corporation, will California Franchise Tax Board go after him as individual?
Yes, and not just the President. Corporate officers — all of them — are ALWAYS personally liable for the taxes of the corporation. Anyone else who is listed as a corporate officer (Treasurer, Secretary, etc.) are also personally liable.
Additionally any employees of the corporation whose job responsibilities include the reporting of and payment of taxes can be held personally liable for any unpaid taxes.