[brenda22]

OK, this is a little bizarre and complex as well so I'll just state the facts. My dad is 90% and I am 10% in a sub chapter s corp in Florida since 2001... I have always been active in the organization and he had always stated that I would take over upon his retirement but for now (2001- present) I would stay on the corporate papers as shareholder, earn my check each week, but not get the 10%. I would claim it and he would pay the taxes on it. That all worked out until 2008 when he started mismanaging the money. I now owe the IRS a total of 53,000, all of which is not my taxable income, I never saw any of it, but I signed the returns. The CPA knew this was going on, that I was claiming income that wasn't mine and that he was paying it. Also, our secretary knows as well as a few others. There's proof, like checks he wrote for the previous years. Can I get out of this obligation? Oh, and he is broke now, spent every last dime he ever made. If I need, I'll go to court ? CPA says they can't do an amendment but I think they simply don't want their involvement exposed. Any suggestions please, I am driving myself crazy worrying with this everyday.

[AK lawyer]

... My dad is 90% and I am 10% in a sub chapter s corp in florida since 2001. ...

So you are saying that he owns 90% of the shares and you own 10%.

... I have always been active in the organization and ... (2001- present) I would stay on the corporate papers as shareholder, earn my check each week, but not get the 10%. I would claim it and he would pay the taxes on it. ...

Were you an officer in the corporation? Normally a shareholder doesn't get paid a salary, only officers do. Or are you saying that the corporation "declared a dividend" each week?

... I now owe the IRS a total of 53,000, all of which is not my taxable income, I never saw any of it, but I signed the returns. ...

...Your personal income tax return reported that you received $53 K as earned income?

Can I get out of this obligation? Oh, and he is broke now, spent every last dime he ever made. If I need, I'll go to court ? CPA says they can't do an amendment but I think they simply don't want their involvement exposed. Any suggestions please, I am driving myself crazy worrying with this everyday.

What's stopping you from hiring another accountant, and amending your return?

The form 1120 S that the corporation filed would be incorrect. Did you sign that too? Your accountant should know what to do about amending the 1120 S.

[brenda22]

1) Yes him 90% shareholder, me 10%
2) Yes, I am Vice President
3) I unknowingly hired an attorney who has a close personal relationship with my CPA, and it was a bit discouraging to say the least. Basically after my CPA and him spoke, my attorney told me amending my taxes would not be in my best interest for a few reasons... me signing the returns could be fraudulent on my part, it would bring attention from the IRS into my other business another sub chapter s corp, and most importantly he said " since your dad is broke and can't pay his own taxes from his returns, he can't pay yours (his really) either and that will be the IRS's main consideration because they want their money and they don't care who it comes from and since you are working and making money, it will be your debt in their eyes. At least with you, they can put you on a payment plan to get it." (my dad is 73 and is not going back into the workforce.) Thank you so much for your time and insight, I feel a little more hopeful since you didn't reply with "sorry nothing you can do." Thanks again, Brenda