This weekend’s Bottom Line column:
Robert Mazzawy of South Glastonbury figured streamlined tax-reporting would be among the benefits of converting his consulting business from an S-corporation to a limited-liability company in 2011.
Mazzawy says he filed dissolution papers for the S-corporation with the Secretary of the State’s office. He also registered his new business, the LLC, with the state Department of Revenue Services.
On the DRS form, REG-1, Mazzawy affirmed the change in organization type and entered the tax registration number of his old business, assuming he was, in fact, closing out that number and business.
Yet a few weeks ago, during an unrelated call to DRS, he was told he owed two years of entity tax on the closed S-corporation totaling, with interest, $626.