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Old 08-29-2007, 11:20 PM
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Is a Corporation required to a file a tax return even though it had no income?

A question for you, TaxGuru, is a US Corporation required to file a tax return even though it has had no taxable income or any activity for the tax year?

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Old 09-16-2007, 10:42 AM
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Is a Corporation required to File a Tax return even if it has no income?

The IRS Specificially states in the publication 1120 (see link below) on page 2, that even if the corporation has "No Taxable income" it is required to submit a timely Form 1120-A or Form 1120 Form corporation tax return, to avoid possible late filing penalities.

http://www.irs.gov/pub/irs-pdf/i1120_a.pdf

I would consult a CPA or tax advisor to ensure whether or not there is merit in maintaining this corporation or to close this corporation down. Clearly, if there is no forseeable activity expected there is a compeling reason to formally withdraw this corporation or close it, and this process should be initiated prior to year end to avoid further filing fees and minimum State corporation tax!

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