Is it legal for a company to change the corporate structure without notifying the employees?
My company adopted a tax strategy in 2009, part of which was to change from a C corp. to an S corp. effective 1/1/2010. I was not aware this change had taken place and continued to operate as a C corp. filing my taxes as such. The I.R.S. would like me to refile as an S corp. or submit a revocation statement. In a perfect world I would have the S corp. be nonexistent. I can provide much more information but this is the gist of it. Can you help me?
Answered By: Steven J. Fromm
There seems to be a problem here. If you are a shareholder, then you needed to have consented to the Selection for it to be valid. You need to talk directly with a tax attorney to figure this thing out.
Answer Applies to: Pennsylvania
Replied: 7/21/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answer Applies to: Pennsylvania
Replied: 7/21/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answered By: David Hoines Law
this is far too complicated you need to consult a CPA or tax attorney
Answer Applies to: Florida
Replied: 7/21/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answer Applies to: Florida
Replied: 7/21/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answered By: Givner & Kaye
The corporation does not have any obligation to notify its employees about its tax structure. However, the nature of your question suggests you are not merely an employee, but that you are also a shareholder. Is that the case? If you are a shareholder, then it could not have changed from a "C" corporation to an "S" corporation without you signing a shareholder's consent.
Answer Applies to: California
Replied: 7/21/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answer Applies to: California
Replied: 7/21/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
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