Hello TaxGuru,
I am in a big dillema here, and I hope you can direct me to the right place.

I had formed an S corp in 2004 and I have filed taxes that year.
The reason forming an S corp was because of my company required me to either make an S corp or be on their W2 with a much much less salary.
After one year I got a good offer at another company (on W2) and left the S corp alone. All I have done till right now (2008) is just paid the Annual Report Filing which was I belive $50.00 a year but did not file for tax nor paid tax. However, during these year I had absolutely NO INCOME coming in to the S corp and I have made few hundred dollars withdrawals from the S corp bank Account.

What is the best way to go about this corporation now ? What will be the best way to minimize my cost/fines? Is it worth for me to just dissolve it or leave it active? My main concern is what are the fines /penalties that IRS will charge if I were to just dissolve the S corp?

This S corp is filed in the state of New Jersey.

Thank you very much for your help.
awaiting for your suggestion/advise.
thanks
TaxRookie.