What is the name of your state? DE
I incorporated in the state of Delaware back in 1994 for the purpose of being able to accept credit cards as a merchant, purchase business related supplies, pay for craft show booth fees and any supplies needed. I have never had employees and am just a crafter who sells on the web and at conventions.
I was told back in 1995 that as long as the corporation never made a profit and I never took a salary or payout from the corp. that I would never have to file a tax return for it. I still kept accurate records and even filled out the 1120 forms each year just in case the IRS asked for them but I have never been requested since I filed the one and only return back in 1994.
Essentially, since 1994 the corporation has only been used as a bank book to receive merchant funds and then spend all of its revenue in the products it manufactures and then turns it around into more costs to produce.
The cost of creating the products it sells has always been higher or a wash after advertising and marketing than the profit it made from the sale.
The only reason I incorporated was to be able to take CC and certain purchases and business manufacturing that I could not do if it was not through a corporation.
The corporation owns nothing and has no tangible assets. As a matter of fact it owes me personally money for the loans I have lent it over the years and technically is in the red from that.
Now that you know all that, here's my question:
I have recently been told by a friend that I may have still needed to file.
If so, will I suffer penalties for not filling even if their was NO net gain?
How the heck do you go about telling the IRS that you never filed since 1994?
Should I have all the returns ready to go and just send them all at once or should I just send them this years and let them ask me for the rest?
How many years can they demand a return from me that includes receipts and details proof etc.
Again they have never requested anything to date but after my friend told me they need a return anyway I really need to know how to go about this.
Thank you very much for any help and advice.
I incorporated in the state of Delaware back in 1994 for the purpose of being able to accept credit cards as a merchant, purchase business related supplies, pay for craft show booth fees and any supplies needed. I have never had employees and am just a crafter who sells on the web and at conventions.
I was told back in 1995 that as long as the corporation never made a profit and I never took a salary or payout from the corp. that I would never have to file a tax return for it. I still kept accurate records and even filled out the 1120 forms each year just in case the IRS asked for them but I have never been requested since I filed the one and only return back in 1994.
Essentially, since 1994 the corporation has only been used as a bank book to receive merchant funds and then spend all of its revenue in the products it manufactures and then turns it around into more costs to produce.
The cost of creating the products it sells has always been higher or a wash after advertising and marketing than the profit it made from the sale.
The only reason I incorporated was to be able to take CC and certain purchases and business manufacturing that I could not do if it was not through a corporation.
The corporation owns nothing and has no tangible assets. As a matter of fact it owes me personally money for the loans I have lent it over the years and technically is in the red from that.
Now that you know all that, here's my question:
I have recently been told by a friend that I may have still needed to file.
If so, will I suffer penalties for not filling even if their was NO net gain?
How the heck do you go about telling the IRS that you never filed since 1994?
Should I have all the returns ready to go and just send them all at once or should I just send them this years and let them ask me for the rest?
How many years can they demand a return from me that includes receipts and details proof etc.
Again they have never requested anything to date but after my friend told me they need a return anyway I really need to know how to go about this.
Thank you very much for any help and advice.