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"No activity" S Corporation return

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    "No activity" S Corporation return

    Taxpayer incorporated his C business to a S Corp but has not operated under the S corp. Is he required to file a return? I had heard that there is a $85.00 penalty per month for not filing but not sure of this. Should I send one in with all "zeros" on it?

    #2
    Are you talking about 2007 or 2008. If 2007, I guess he filed a Schedule C/1040?

    Is he working as a SubS for 2008? What is his current status?

    If he plans on staying a 1040/C you should file The S Corp for 2007 and mark it final. The Corp should be dissolved with his state and pay the penalties there too.
    This post is for discussion purposes only and should be verified with other sources before actual use.

    Many times I post additional info on the post, Click on "message board" for updated content.

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      #3
      S Corp is required to file every year of its existence. If there was no activity then you do put zeros on certain lines and this is known as a "no activity" return. I think the required zeros are for each income item and the total expenses and of course the bottom line profit loss and the tax. I am not sure of those because my software does them automatically if I simply fill out the header information and make no other entries other than possibly marking final return box or etc.

      As Bob said if he is not going to operate as an S Corp the beastie should be dissolved by proper action with the State.

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