My CPA entered the wrong amount for total assets on my s-corp 2007 return. I didn't notice it until now when I was ready to copy the info for the 2008 return. He said he did that to avoid paying minimum tax for NYS ($800). Was it legal for him to do that? I thought he'd use a loophole to get me exempted not falsify my total assets. The return was for a short year when I had no business. My total assets at that time were $1000.

I want to dissolve the s-corp now and want to file my final return for 2008.
How do I get around this mistake as I have to enter beginning of the year balance and year ending balance. I only had $900 expenses (tax return filling fee and phone and website costs)and only $250 income.

Thank you for your time to answer my question.

I suggest that you really only have 2 choices. The first choice is to request your CPA to amend your prior year corporation tax return and report the correct amount of assets that were omitted.

The 2nd choice is for you to ignore the whole matter as the first course of action would be an expensive choice and involve a little effort on your part that may also trigger some action from NY State.

I think that you need to weigh out both options carefully with your CPA and ask for advise as to what you should do!

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