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?
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).
Source(s):
former IRS revenue officer
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