NC Scorp

[erchess]

I have been doing an SCorp since its first return in 2004. Every year has been either a loss or no activity. I have efiled the Federal but since NC cannot be efiled I have given the guy a copy to mail and vouchers for the two payments that are still due to the State. Now he has a notice saying they can't find 2008 and so if anything was filed and or paid they want proof and if anything is due for 2008 they want it filed and paid 30 days from the notice and if any other returns or payments are delinquent they want those 30 days after that. The notice does give one option that interests the client and it is this option that leads to my question. We could check that the corp has been disbanded so we're not paying anything or filing anything we're only checking that choice and writing in the date it was disbanded. My question is can we get by with a date after the notice? We do know how to disband the corp. If we did disband it when would the final Federal return be doe?

BTW the guy says he willfully did not file some of the NC Returns and some years he mailed the returns but without payments and he doesn't think he can come up with proof he ever paid anything so if NDOR says they have no record of a payment or filing he wants to assume that no payment or filing was made.

Other facts - as always he is in a financial bind despite a good income and the Corp never has and most likely never will do anything to speak of.

[geekgirldany]

Myself I would give him the returns to send in. Since he said he willingly did not file NC for some years and/or did not pay... I do not think I would help him with saying the SCorp was disbanded. I understand he may not can pay it now but he can set up payments.

[JohnH]

If you give him the returns and he doesn't file them, that's his problem Eventually the NC Dept of Revenue will initiate a revenue suspension, and then later the Sec of State will do an administrative dissolution. If you take steps to file articles of dissolution, NCDOR will require that the corp file and pay all past due balances before processing it. But if you go the revenue suspension/administrative dissolution route, they can't come after him for the unpaid corp taxes. They will try to intimidate him, but they can't collect from him, especially if he has maintained a good adminstrative firewall between himself and the corp.

You can file a "Final" 1120S with IRS by simply marking the last return as such. It is not necessary to dissolve the corporation before filing the "Final" 1120s, provided the corp really has become inactive.