Welcome, Guest. Register Now!
   
Veiw New Posts View Todays Posts


» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 
Financial Planning
 
US Presidential Tax Policies
 
 
 



View Single Post
  #2 (permalink)  
Old 09-16-2007, 10:42 AM
TaxGuru TaxGuru is offline
Super Moderator
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 729
Blog Entries: 2
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!
__________________
Ask TaxGuru
Please refer to the legal disclaimer.
Reply With Quote