Monday, December 8, 2014

Kelley Lynch's Email To IRS Re. Outstanding Questions Over Whether Leonard Cohen's Fraudulent Default Serves As A Corporate Dissolution

From: Kelley Lynch <>
Date: Mon, Dec 8, 2014 at 1:07 PM
Subject: Re: Traditional Holdings, LLC, Cohen's Loans, Federal & State Tax Returns (2004 and 2005)


I have no idea if the fraud default judgment is a corporate dissolution related to my legal ownership interests in BMT, TH, and Old Ideas, LLC.  The default judgment (or Complaint) does not address the values of the IP assets owned by BMT and Old Ideas, LLC.  I have asked Jeffrey Korn, as I am preparing to file my 2004 and 2005 federal and state tax returns, if his client views the judgment itself as a formal dissolution of these entities.  I cannot address why they have taken the position that I have a partnership interest in LCI but Cohen and Kory testified about the K-1s I have been attempting to address for years now and they refuse to rescind the documents.  

All the best,

What Happens If a Corporation Dissolves & Still Owes Tax Debt?

by Tom Streissguth, Demand Media
When a corporation goes through dissolution, it terminates its existence as an active, registeredbusiness entity. It still has some obligations to the Internal Revenue Service, including the filing of a final tax return, the payment of payroll and unemployment taxes, and the transfer to the IRS of any money withheld from employees for income taxes. If the business has back taxes that it is unable to pay out of assets, it must negotiate repayment with the IRS or with the agencies responsible for collecting state income taxes.

Dissolving a Corporation

When a corporation is dissolved, it must pay debts and distribute assets to its shareholders or to outside parties who have a claim on those assets. The IRS requires corporations going out of business to file Form 966, Corporate Dissolution or Liquidation. The business must also file a final annual tax return, and make final employment tax, payroll tax, and income tax payments. The IRS also wants a report on capital gains and losses, the disposition of all business assets, and property exchanges with another entity, plus information on any change in the form of the business.

IRS Enforcement Actions

The IRS does not waive its right to unpaid income or payroll taxes when a corporate dissolution occurs. The agency can enforce these debts with liens and levies on the remaining assets of the corporation, or sue the corporate officers personally in order to collect. The IRS suspends collection efforts if the affairs of a business wind up in court, either through bankruptcy or other litigation, and puts collection on hold for six months after the litigation ends.