Let's hope this is enough information to get a gist of an answer.

There was a S Corporation that was administratively dissolved in 2005. The owner has continued to operate it and carry on it's business for the past four years. The owner employed a couple people in that time.

Apparently, income tax statements have not been done or filed on the corporation since 2005 even though they've been operating it and employing people. No extensions have been filed, either.

It is a fact that the IRS verifies no income statements have been filed on this corporation since 2005 and the owners claimed to have issued W-2's and "kept current" with the state unemployment funding after 2005.

My question is, is there any way possible for this scenario to exist legitmately without there being massive tax fraud?