Unfiled corporate tax returns cost businesses at least 5% in failure-to-file penalties monthly, and penalties and interest continue to accrue until you file. But once you get behind, it can be hard and potentially even scary to catch up. Many business owners avoid filing back returns because they fear it will trigger an audit. 

If you accidentally make a payment for the wrong tax period, the IRS will apply any overpayments to tax periods with balances due and send you a refund of the remaining amount. 

The most effective way to claim residency in Florida is to move there, start working, and establish a life in a Florida community. But it's not always that straightforward. Depending on where you live now, where you have other residences, and your long-term goals, the process can be a lot more complicated. 

IRS and state tax liens do not appear on credit reports – that means they don't affect your credit score, but they're public records, so they do affect your ability to borrow money. 

In California, the FTB may suspend your business if you don't pay or file your taxes. If suspended, your business cannot operate, but it also can't take any other actions, including selling assets, dissolving the company, entering into contracts, or defending itself in court (or bringing lawsuits against other parties). Suspension puts you into a state of limbo where you cannot operate, but you also can't really liquidate your assets and shut down either.