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Merlo
Merlo, Accountant
Category: Tax
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Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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I have recently received a notice from IRS saying that my corporation

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I have recently received a notice from IRS saying that my corporation has never filed a tax return. However, I never conducted any business therefore generating absolutely no income. I know that I am still required to pay teh minimum franchise tax. How do I pay for that? What is the next step for me to do? Do I have to file a tax return and indicates that all income is $0. We set up the corporation originally since this is a start-up and we would like to generate business. However, the start-up was never operational so basically all we did was register and did nothing. Please help!
Submitted: 5 years ago.
Category: Tax
Expert:  Merlo replied 5 years ago.

Hello Tea,

 

What type of corporation did you set up?

 

Was this a C Corp, S Corp, partnership?

 

 

Customer: replied 5 years ago.

Hi,

 

I believe that this is a C corporation with corp(NNN) NNN-NNNNand the corporation number is(NNN) NNN-NNNN How do I also change address so that things will be sending to the new address and not the old one?

 

Thanks!

Expert:  Merlo replied 5 years ago.

Hello again Tiffany,

 

If you are established as a C Corporation or even as an S Corporation, then you are required to file a tax return every year, even in years where you have no activity or no taxable income. Please refer to page 2 of the instructions for Form 1120 (Corporate Tax Return), under Who Must File. So once you established your corporation, you should have been filing annual tax returns, even if you had no income from the business, and simply reporting no income or expenses. You must continue to file each year until you formally dissolve the corporation.

 

http://www.irs.gov/pub/irs-pdf/i1120.pdf

 

To change your business mailing address, you need to complete Part II of Form 8822. Here is a link to that form.

 

http://www.irs.gov/app/vita/globalmedia/8822.pdf

 

If this was helpful please press the Accept button. Positive feedback is also appreciated.

 

Thank you Tiffany

 

 

Customer: replied 5 years ago.

I have one more question. Which form should I file then? Is it form 100? Also, how should I properly file it? Should I put 0 for all of the required files?

 

Can I e-file? would that be complicated if I want to refer to my case number:(NNN) NNN-NNNNS.

 

How can I check whether I have a S or C corporation?

 

Thanks!

Expert:  Merlo replied 5 years ago.

Hello again Tiffany,

 

For your federal return you would file Form 1120 if you are a C Corp or Form 1120-S if you are an S Corp. You will need to call the IRS to find out how your company is established.

 

For the state of CA you will file Form 100.

 

You can no longer e-file any returns. October 15th was the deadline for e-filing 2008 returns and prior years can no longer be e-filed. So your returns must be mailed.

 

If this was helpful please press the Accept button. Positive feedback is also appreciated.

 

Thank you Tiffany

 

 



Edited by Merlo on 12/2/2009 at 8:48 PM EST
Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience: 25+ years tax consulting. Specializing in returns for US citizens living abroad
Merlo and 3 other Tax Specialists are ready to help you
Customer: replied 5 years ago.

Can I get some tips on how to fill out the Form 100 and form 1120? I basically have no income and no loss and no asset. Should I just put $0 in all the fields?

 

How do I pay the minimum franchise tax? I heard that I still have to pay minimum franchise tax every year even if there is no income, etc? Which field is that and how much is that? How do i find information on that?

Expert:  Merlo replied 5 years ago.

Hello again Tiffany,

 

You would basically fill out both forms with all zeroes for items pertaining to income and expenses.

 

As far as the CA franchise tax fee, there is a minium annual fee of $800, regardless of whether or not you had any income for the year. Your minimum franchise fee is entered on line 24 of Form 100. This is explained in more detail in the Form 100 instructions.

 

 

Customer: replied 5 years ago.

Am I required to pay $800 - the minimum franchise fee? If I do not wish to dissolve the corporation, do I have to pay for that?

 

Is there any way that i can waive the 800 dollars?

Expert:  Merlo replied 5 years ago.

Hello Tiffany,

 

The minimum franchise fee is waived for the first year you are in business if you had no income. After that the minimum fees applies every year without any exceptions until such time as you dissolve your corporation.

 

 



Edited by Merlo on 12/2/2009 at 9:43 PM EST
Customer: replied 5 years ago.

I believe that my corporation was incporated in 2008. How do I also check when is the date I incorporated? Can you check for me if I give you my corporation number? How do I file waiver?

 

 

Expert:  Merlo replied 5 years ago.

Tiffany,

 

I am not associated with the IRS or with the state of California. They are not going to give me any information on another taxpayer's account. You will need to contact the state of California yourself to check the date that you filed for incorporation.

 

I am sorry that I cannot help you further with this, but we are strictly a help forum for general tax questions that you may have, and cannot assist you directly with your tax returns or other tax issues, as we have no access or authority to obtain that information.

 

You will need to contact the California Franchise Tax Board to check on your date of incorporation.

 

 

Customer: replied 5 years ago.

Do you know where I can find instruction on filing the Form 100? Can you assist on that? I have a question regarding Schedule Q?

 

 

I went to the following site to obtain my tax return form (100) but i cannot find the instruction.

http://www.ftb.ca.gov/forms/2008/index.shtml

Expert:  Merlo replied 5 years ago.

Following is a booklet that contains the instructions to Form 100

 

http://www.ftb.ca.gov/forms/2008/08_100bk.pdf

 

 

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Merlo
Merlo
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25+ years tax consulting. Specializing in returns for US citizens living abroad