Corporate Tax FAQs

Corporations are subject to very different tax laws than individuals. If you’re responsible for taxes owed by a corporation or your Texas business is facing an audit, read on to learn the answers to some commonly-asked questions about corporate tax issues. If you need additional help, contact the seasoned Dallas corporation tax attorneys at the Scammahorn Law Firm for a consultation.

Do I have to file a tax return on behalf of my corporation, even if the corporation doesn’t owe taxes?

A federal tax return must be filed on behalf of any corporation with a federal tax ID, even if the corporation didn’t earn any money or doesn’t owe anything in taxes. Failing to file a tax return can lead to the imposition of a penalty. Failing to file could also result in an audit of the missing tax year, and additional fines and penalties if the IRS believes that the corporation does owe taxes for the missing year. The only corporations exempt from filing a tax return are those who are exempted under Section 501 of the federal tax code.

Can the IRS come after me as an individual if my corporation owes taxes?

Many business owners choose to form a corporation at least partially so that they can shield themselves from liability for debts owed by their business, including tax debts. Operating your business as a corporation doesn’t guarantee that you’ll be able to avoid personal liability for tax debts or other amounts owed by your business. For example, if corporate shareholders are not diligent about observing corporate formalities, such as holding regular shareholder meetings or carefully maintaining financial records, the IRS may be able to “pierce the corporate veil” and seek back taxes from shareholders. Even if corporate formalities are observed, the IRS may be able to seize shares of a corporation that owes taxes.

What can a seasoned tax attorney do to help me during an audit?

Having a knowledgeable Texas tax attorney on your side during a corporate audit is critical. An attorney can help you figure out what records you will need to present to the IRS, where those records can be found, and how best to gather and organize them in advance of presenting them to the IRS. Our experienced Dallas and Tyler tax attorneys at the Scammahorn Law Firm, PC will rely on our understanding of the law and decades of practice to knowledgeably defend your returns and the use of deductions, minimizing the potential for fines and penalties at the conclusion of your audit.

Get skilled and dedicated legal help when facing a Texas corporation audit or back tax issue by contacting the Dallas and Tyler corporation tax attorneys at the Scammahorn Law Firm, PC at 903-595-1000.