Late 1120S for 2005 & 2006

[dhawkcpa]

My one man rock & roll band showed up to file 2005 & the final year 2006. Though I had lost him and wished so too. I think the $85 per month penalty started for 2007 but am not sure.

Am giving some thought to amending 2004 which also was filed late and calling it the final return and putting all the income and expenses on Schedule C's for 2005 & 2006. 1099MISC's were given to client in corporate ID for both 2005 & 2006. Client has not behaved in a corporate manner in any way, payroll or otherwise.

Mostly I have normal clients. Thanks for any thoughts.

[erchess]

My two cents

I don't think you can decide now to make 2004 his Final Return. I think that if you had wanted to make it the final return you would have had to write to someone in State Government (usually the Secretary of State) and perhaps fill out a particular form before the date on which you wanted it to take effect. I think that since you did not do that returns would be due for 05 and 06 even if there were no economic activity and I think the penalties for filing them late would be unaffected. So I think you need to crank out two 1120S Forms as soon as you reasonably can and then you can say goodbye to this client unless he decides that he wants you to do his 1040s from now on.