Corporation With 0 Income

[gman]

Does a corporation that has gone out of business, yet not filed to disolve itself have to file a federal income tax return? No income or expense in 09


thanks

[JohnH]

I think it's wise to file returns until the "Final Return" box is checked. Keeps the IRS computers happy.

[BOB W]

And file state returns until disolved.... lots of penalties in most states.........

[Roland Slugg]

It's not only "wise" ...

... it's the law. (Code §6012(a)(2); Regs §1.6012-2(a))

And Bob W. is absolutely correct ... the state penalties can be quite high, at least in California and probably many other states as well.

[luke]

paper file

I usually paper file the return and write "no business activity" across the top of page one.

[taxxcpa]

Inactive Corporation

I have a client who keeps wanting to file for a corporation that has not done business for over ten years.
I prepare a zero return which only takes a couple of minutes and have him sign the 8879 when he arrives with data for his Form 1040 return and e-file it immediately.

[gkaiseril]

... it's the law. (Code §6012(a)(2); Regs §1.6012-2(a))

And Bob W. is absolutely correct ... the state penalties can be quite high, at least in California and probably many other states as well.

Several years ago I had a return I prepared and a number of other returns prepared in the office I worked in subpoenaed by the IRS for a case involving fraudulently filled returns. The perpetrator used the EIN for an inactive corporation that had not filed a return or a final return.

Filing a return even with no activity will support the no activity could allow the IRS to more quickly respond to miss use of the entities EIN. And may make the life of the responsible entity officers defend themselves if there is a misuse of the EIN by a third party.