No transactions of c-corp, how to file taxes?

[niz1985]

Hi. I formed a c-corp from Wyoming last year in September. But, I did not do any transactions in the company at all. I did not even open any bank account. Is it necessary for me to file taxes for last fiscal year? If yes, how can I do that?

 

[LdiJ]

Hi. I formed a c-corp from Wyoming last year in September. But, I did not do any transactions in the company at all. I did not even open any bank account. Is it necessary for me to file taxes for last fiscal year? If yes, how can I do that?

No, it is not necessary for you to file.

 

[tranquility]

Hi. I formed a c-corp from Wyoming last year in September. But, I did not do any transactions in the company at all. I did not even open any bank account. Is it necessary for me to file taxes for last fiscal year? If yes, how can I do that?

All corporations based in the U.S. must file an income tax return even if they have no taxable income. I know that does not directly answer your question, but, if you don't file, the IRS will eventually ask you for one. If you actually had no transactions at all, just fill in the informational data and leave the calculated areas blank.

 

[LdiJ]

All corporations based in the U.S. must file an income tax return even if they have no taxable income. I know that does not directly answer your question, but, if you don't file, the IRS will eventually ask you for one. If you actually had no transactions at all, just fill in the informational data and leave the calculated areas blank.

My experience has been that if a return is not filed for the first year that the corporation is formed, that the IRS never asks for a return. It is fairly common for a business entity not to actually be active in the first year that they are formed.

 

[tranquility]

My experience has been that if a return is not filed for the first year that the corporation is formed, that the IRS never asks for a return. It is fairly common for a business entity not to actually be active in the first year that they are formed.

https://www.irs.gov/instructions/i1120/ch01.html#d0e168

Who Must File

Unless exempt under section 501, all domestic corporations (including corporations in bankruptcy) must file an income tax return whether or not they have taxable income. Domestic corporations must file Form 1120, unless they are required, or elect to file a special return. See Special Returns for Certain Organizations, below.

But, I don't disagree with you about the IRS. Here, it is the state that usually demands the filing after a number is pulled.

 

[niz1985]

Thanks for the advice, guys. Can you let me know if there is an easy way to fill out form 1120 through a software or something, which makes sure I fill everything which is required? (I just want to be compliant with the laws)

 

[LdiJ]

Thanks for the advice, guys. Can you let me know if there is an easy way to fill out form 1120 through a software or something, which makes sure I fill everything which is required? (I just want to be compliant with the laws)

If you want to file electronically you will not be able to file a true zero return. The system won't accept that. You will have to put down 1 dollar of income. Everything else can be zero.

To be honest, I am unaware of what online/software filing options are available for something like an 1120, other than professional ones. Does anyone else know?

 

[davew128]

If you want to file electronically you will not be able to file a true zero return. The system won't accept that. You will have to put down 1 dollar of income. Everything else can be zero.

Are you talking about professional software or consumer? I assure you I file MANY corporate returns with nothing but zeros on them.

 

[LdiJ]

Are you talking about professional software or consumer? I assure you I file MANY corporate returns with nothing but zeros on them.

Professional software. I can file a paper return with nothing but zeros but it won't go electronically without at least a dollar of income. I usually just throw in a dollar of interest income.

 

[tranquility]

Professional software. I can file a paper return with nothing but zeros but it won't go electronically without at least a dollar of income. I usually just throw in a dollar of interest income.

Lacerte (What I use.) is a PITA on the electronic filing check before sending in that we rarely get a kick-back unless there is some number mismatch that a software without access to the master file just couldn't catch. I just dummied up a return with no numeric input and it passed the check. What are you using?

Thinking edit:
But, who really cares if one throws another dollar on a return? Even if it is a program issue, it would be a distinction without a difference. Wait until they start auditing my "variance" liability (It always seems a liability for some reason.) on partnership returns to make them balance.

 

[LdiJ]

Lacerte (What I use.) is a PITA on the electronic filing check before sending in that we rarely get a kick-back unless there is some number mismatch that a software without access to the master file just couldn't catch. I just dummied up a return with no numeric input and it passed the check. What are you using?

Thinking edit:
But, who really cares if one throws another dollar on a return? Even if it is a program issue, it would be a distinction without a difference. Wait until they start auditing my "variance" liability (It always seems a liability for some reason.) on partnership returns to make them balance.

We use Drake, and I like it better than any other brand of professional software that I have ever used. Its a PITA too about the electronic filing check but I actually think that is a good thing. It also gives us "notes" about things that won't stop electronic filing but might be worth checking out before filing. I find the notes very helpful when I am reviewing returns from our satellite offices.

Partnership returns are NOT my favorite thing.

 

[davew128]

Lacerte (What I use.) is a PITA on the electronic filing check before sending in that we rarely get a kick-back unless there is some number mismatch that a software without access to the master file just couldn't catch. I just dummied up a return with no numeric input and it passed the check. What are you using?

I also use Lacerte and have zero returns on all but individuals transmitted.

 

[tranquility]

We use Drake, and I like it better than any other brand of professional software that I have ever used. Its a PITA too about the electronic filing check but I actually think that is a good thing. It also gives us "notes" about things that won't stop electronic filing but might be worth checking out before filing. I find the notes very helpful when I am reviewing returns from our satellite offices.

Partnership returns are NOT my favorite thing.

You LIKE Drake? They always come calling and we always give it a try and, it just seems like a lesser program. If you really know what you are doing, it is fine. A smaller office where program cost is the key with enough senior members for review, it might make sense. But, you get what you pay for.

Lacerte? I don't think it is the "best". It is expensive, but not crazy expensive, and give you many diagnostics and worksheets and schedules where a good check can be done when the result is not quite as expected. Then again, we were with them since they started in CA, so our client number is low and everyone in the office knows exactly how it works. Retraining on a new system would probably cost more than it is worth. While their customer service and support has markedly diminished since Intuit purchased it, we rarely call unless there is a true program error, so that is not a problem. I don't like the marketing strategy where an errant link puts you into a moneymaking theory like accessing their email input or refund card; at some point I suppose we will have to do it to stay competitive. Realistically? Our clients don't care about that. They're old and they're rich and they don't need the modern nonsense. We do have a mix and someday, I might take us there. I just hate the in your face aspect of the additional "services" they are selling.

If we were to change, we'd probably go ProSystem FX. If I retire (Hah!), I'd probably do a small clientele with Drake to keep the doors open while fighting the man in Education law. Making sure the disabled are not screwed in getting their civil right of education and all that.

 

[davew128]

Like anything else, to some extent you get what you pay for. I've used Lacerte primarily for several years, used Prosystem, used Drake briefly. Drake is ok if you have returns without more complex items. Lacerte is good BUT is weak on its fiduciary module and its passthrough entity inputs. CCH is the strongest of the bunch, but also the most expensive. That said, a friend of mine switched to Lacerte and got an unlimited return deal for $6k/year for 5 years. These things ARE negotiable.