Is this a fileable business?

[cathe]

Client started an S Corp in June '09 and closed it down in Sept '09. Is this 4 month business a fileable business for 09? I thought that a business that starts and ends in the same year is not considered a business, but does the 1120S character make it fileable?

Cathe

[ChEAr$]

Client started an S Corp in June '09 and closed it down in Sept '09. Is this 4 month business a fileable business for 09? I thought that a business that starts and ends in the same year is not considered a business, but does the 1120S character make it fileable?

Cathe

It sure does. IRS will be waiting with bated breath for the 1120S come next March.
Remember also, that in only 4 months, the corporation probably operated at a loss and
it certainly is to client's benefit to establish and claim that loss.

[Bees Knees]

IRS will be waiting with bated breath for the 1120S come next March.

If the S Corp liquidated in September of 2009, the due date for the final return was December 15, 2009, with an extension due date of June 15, 2010. $89 per shareholder per month penalty for filing late.

[luke]

Good catch Bees

One like this got me also - of course IF they didnt really "dissolve".....

[JohnH]

If there is a FTF penalty, I believe it is only assessed against the corp. So if the Corp has no cash or assets, it may be that the shareholder could derive the benefit of this S Corp loss without the expense of the penalty.

[taxdude71]

I think they asses the penalty per shareholder.

[JohnH]

Yes, the penalty is assessed per shareholder, but the shareholder is not personally responsible for paying it. Since the penalty is assessed against the Corp only, then the penalty isirrelevant if the Corp has no assets. That's the way I understood it when the penalty first came into existence, although subsequent revisions may have changed that.