No, it is not necessary for you to file.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.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?
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.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.
https://www.irs.gov/instructions/i1120/ch01.html#d0e168My 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.
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.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.
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.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)
Are you talking about professional software or consumer? I assure you I file MANY corporate returns with nothing but zeros on them.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.
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.Are you talking about professional software or consumer? I assure you I file MANY corporate returns with nothing but zeros on them.
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?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.
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.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.
I also use Lacerte and have zero returns on all but individuals transmitted.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?
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.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.