Suspended Corporation

[Joe Btfsplk]

Tax paid to state deduction on Fed return

You can deduct state taxes on the Federal return, but they have to be taxes, not penalties for late payment. There may be both if he is paying late.

[Unregistered]

Tax paid to state deduction on Fed return

Thank you for your information.
What would you say about this Assembly Bill ?

http://www.ftb.ca.gov/law/legis/01_02bills/ab547_022101.pdf

Thanks
James

[veritas]

You should deduct the amounts paid to the franchise board as a capital loss. They are final expenses of a corporation.

[BOB W]

Final Expense

If I know the final tax due, I accrue that expense on the final return and take it as an ordinary deduction. I do the same with any other expense in the final year, like my fee.

[Unregistered]

James - Final Tax Due

Does it means:
The due tax + penalty + interest must be paid first, before I fill the final tax return to Franchise Tax Board ?
Or can I file the Final State Tax Return with the back tax amount (to save another $800/yeard) then pay the back tax amount later...

This back tax amount must be in some forms that I can claim as final expenses of a ccorporation.
James

[Unregistered]

Dissolution or let die

If the corporation filed and received a Federal ID number, it would be good to file the Federal returns and mark the last one final.

If CA is like NY you will have a hefty franchise tax bill. You may want to rethink dissolution by letting the Corp just die. Lets look at this way, if the Corp has no assets the Corp will not have to pay the franchise bill. If the bill is not paid CA will not dissolve the Corp.

NY has an $800 minimum per year for "no asset" corporations plus late filing fees and other penalties.

Bob,

Letting the Corp die means no one will do anything to take care the franchise bill.
How long will the State (Franchise Tax Board) will bury the Corp ?

Guest

[Bird Legs]

Corp. dissolution or die

Would the state come looking to the stockholders, owners, for the state franchise
tax if the corp. is not dissolved?
Just thinking.

[BOB W]

Ny

NY is always looking but has yet to chase the owners. Eventually the Corp is dissolved by proclaimation of the state. What other states due I don't know.

[S T]

Calif Franchise Tax Board

For what it is worth,

During the Amnesty in California a few years back, I had an occasion to phone Franchise Tax Board on behalf of a client that had formed an S Corp. Delinquent filings and non payment of the $800 annual fees for several years. Client was going to take advantage of the Amnesty Program.

In a conversation with the Franchise Tax Board Corporation Dept, the representative advised for the client to do nothing, since the S Corp had never transacted any business. The rep advised that they would NOT seek payment from the Shareholder. If they tried to dissolve the Corporation, then all fees and penalties and interest would be due.

You might want to call Franchise Tax Board and speak to the Corporation Dept to see if this still applies.

Sandy

[BOB W]

Let it go....

... to the wayside don't file for dissolution. let it die.