As the sole shareholder of an S-Corp, is it my responsibilty to file the corporation's taxes?
June 5, 2012 5:27 PM Subscribe
Please help me settle a debate... who is responsible for filing a corporation's tax forms, a sole shareholder or an officer?
posted by Swede78 to Law & Government (5 answers total)
A few years back, my dad and I set up an S-Corporation in IL. I was the only one named as the officer(s) and shareholder. After about a year of inactivity, I wanted to get out of it because the legal responsibilities frustrated and stressed me out. The business wasn't doing anything, but I constantly felt like I was going to be fined for not fulfilling some legal requirement. So at the time of renewal, we switched the officer positions to my step-mom.
Now (a few years later), they've actually got the business going and making some money. However, they never spread out the shares to other family members as originally planned. My step-mom thinks that because I'm the sole shareholder, I'm the owner and responsible for the corporation's taxes. She asks me to sign this and that. I finally convinced her that as a shareholder, I should only be responsible for filing form Schedule K (based on the corp's taxes) with my personal tax returns. However, I'm back to square one, because now she wants me to submit a late filing waiver request letter to the IRS for the corporations tax form 1120S, again as the "owner".
Who's right here? As the sole shareholder, am I the owner and thus responsible for filing the corp's tax forms? Or isn't that the officer's job?