One of S-Corp clients asked me that. I would think the S-Corp could be dormant but would still be required to file a tax return each tax year, correct?
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can an s corp be put on hold
An S corp must file taxes any year that they are in existence whether they have a gain or not.ken -
And the penalty is an unbelievable $195 per month, per shareholder (max of 12 months).
Last year we had an S corp, 4 shareholders, didn't file the previous year - they thought they could just ignore it and it would be dissolved.
SURPRISE $9,360 in penalties. We asked for an abatement, however I never heard what happened.
MikeComment
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The penalties are assessed against the corporation...... so if they just walk away from the Corp, nothing is due. UNLESS the corp has assets that are in the corp or distributed to the shareholders.This post is for discussion purposes only and should be verified with other sources before actual use.
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S corp owned a vacant warehouse. No income, but the building was worth some bucks.Originally posted by BOB W View PostComment
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He had better file every year and try to get the penalties removed...............Otherwise he will owe the money.This post is for discussion purposes only and should be verified with other sources before actual use.
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