Payroll Deposits but no payroll

[kpangelinan]

Client made deposits for 4th quarter payroll last year based on previous deposits, but there was no payroll during this time.

My initial thoughts are to file the 4th quarter 941 as a zero return and the IRS will refund the deposits made.

Thought I'd throw it out there to see if there were any other thoughts. Thanks,

[oceanlovin'ea]

I think my first question would be "Should they have done some payroll for the quarter?"

Has the tax return already been done for last year?

Linda, EA

[kpangelinan]

I think my first question would be "Should they have done some payroll for the quarter?"

Has the tax return already been done for last year?

Linda, EA

The tax return is being held up because of this payroll issue, so once I reconcile the payroll, I can wrap up the returns.

They were sole props and were told by an unlicensed accountant to do payroll for themselves when they didn't have the profit or funds to do so, not to mention, that there was no reason to do it in the first place....only thing I can think of was to maybe give some social security credits to the spouse, but aside from that, there should have been no payroll.