Sorry in advance if this has been asked, I searched around the forums for a bit before posting, but it's all in finding the right combo of words...

So we had an S Corp for two years total, filed one reg return and then a final return. Made zero profit, paid the minimum $900-something NY tax the one year, and then got the bill for the second year $900-something last year, which did not get paid at the time.

Just received a collection notice from a collection agency about this amt due from tax season 2007. Now, I eventually do plan to pay this off, but right now finances are in some dire straits, and I have higher priorities (at least I think) that I need to take care of first. I am just wondering legally what leg they have to stand on, as in since the tax lien is in the dissolved corp's name, can they take a judgment against me personally and seize my personal bank accounts, etc in the meantime? Will it affect my credit rating, since its in the corp's name and my name not on it at all? And lastly, it was a 50/50 2 shareholder corp, can/does the other shareholder have credit issues to worry about or judgments?

Thanks for your guidance. (Needless to say there is no money for an accountant at this point. I thought I had read elsewhere last year - but can't find it now - that people had said essentially s corp back taxes on a dissolved corp were noncollectable and that many just blew them off since once it's dissolved, they have nothing to collect from really. That's not my plan at all, but to be honest in my mind it is way down the list of priorities at this point, unless someone tells me differently.)