Hello:

I have a corporation that made roughly $13,000 dollars in 2008. Starting this business has been very tough with this economy and I am barly scraping by every month. I can not afford pay a CPA $600 to file a return on my behalf. I finally have the money to pay the $800 minimum tax which was due early last year. Filing my return should be pretty simple, I don't own a home, not married, no stocks, etc.

What kind of advise do you have for me? I will have enough "write off's" to cover the $13,000. Will I be penalized even though I do not owe any taxes?

Very frustrating. Any feedback will help.

Thanks,

Larry

Despite not making a profit, you would still be liable for the State minimum franchise taxes. But, there should be not be any Federal Tax liability on the filing of the Corporation tax return. Also, these Franchise Taxes are due on quarterly basis, and if you have not paid these on a timely basis, you would be subjected to late payment interest and potential penalties.

Regarding the CPA's fees, the reason the Fees are $600 is because the processing and software costs of preparing this return could be quite material nowadays, but, perhaps you may be able to negotiate these fees down by a hundred dollars or so.

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