Corporation With no income

What is the name of your state? Pennsylvania

We own a small campground and it is a sub chapter S corporation. Recently, just as we were ready to open for the season, I had some health problems that will not allow us to open this year. We have done all the normal advertising, maintenance and purchases leading up to opening day but will not open the campground this year. How can I explain to the IRS that we have all the deductions but no income for the year?

There are a lot of companies that have no income. An example would be a new company that is just starting up and has expenses but no sales. The rule is that the business must have a profit motive. Circumstances like yours are not unusual. There is no problem and you will probably never be asked to explain.

It sounds like you need a tax advisor. They can help you with issues like health insurance and the carry forward and back of any losses.

You should also consider a computer program for your books and your taxes. They make tax filing much less complicated and you don't have to worry about forgetting something. The cost is minimal when compared to the effort saved.

NOTICE- The author of this post is not an attorney. The
information presented here is the result of the authors
research and thirty years experience in the legal codes,
cases and practices of the States of North and South Carolina,
and the county in which author resides and is for general
information only. Be advised the legal codes, cases, and
practices of any other state or county could vary greatly.
If you need legal advice contact an attorney.

Just file the corporate tax return and claim the deductions. This will likely general a net operating loss in 2003 (NOL), which can be carried back for 7 years. This will allow you to claim a refund of taxes paid in past years.