I formed S-corp in Oct'05.Initally I setup bought something business total expense around 5k but i didn't do any business(no activity after spending 5K).

I was filing quarterly/yearly returns showing Zero dollar income.For the 2006 i claimed my investment losses in my personal income tax.

Couple of months ago i received a notice from NJ Tax division that I owe taxes per each year and when i called IRS they mentioned i need to pay Alternative Min tax of $550/Year and if i do not do any business close it.Since i do not have any assets,I completed the form and received acknowledgement.

I received on more letter that i still owe taxes with penality per each year.Only $35 dollars left in the bank account after the money being spent(not to say all $5k gone).
My question is:
Do i still owe taxes to NJ gov?I thought company is different from personal and that the reason we form corp.Do i need loan more money to the s-corp to pay taxes of roughly 3k with penality?Becaus eof my misunderstanding of no income no tax..it is costing me more than i received anything

What would happen to my personal tax returns?I would like to resolve this.Any help/suggestions would be greatly appreciated.

Hi Vivid,
I'm no expert and in fact-have posted a similar question as yours. I've been out of state for years now. NJ is looking for back CBT tax. I can tell you what a CPA here in AZ. told me. He said to write them a letter stating that the S-corp. no longer exists and that there are NO ASSETS. Beyond that, he recomended I ignore any future correspondence. Every state is different with most just revoking and dissolving inactive corps. without consequence. Of course NJ-as with alot of things, goes about it differently. Nevertheless, he felt they cannot come after me personally as I'm simply listed as the 'agent.'
It probably doesn't hurt that I'm also out of state. Good Luck!

Thank you for the response.