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Gerri A Harrison CFP EA
Gerri A Harrison CFP EA, Enrolled Agent
Category: Tax
Satisfied Customers: 252
Experience:  27 years of preparing income tax returns - both personal and small business
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Our completely volunteer organization became incorporated as

Resolved Question:

Our completely volunteer organization became incorporated as a non-profit two years ago and our treasurer has been working on obtaining 501c3 status. In the meantime, what income level must we reach to be required to file a tax return? Is it advisable to file a tax return even if we do not reach that income level?
Submitted: 5 years ago.
Category: Tax
Expert:  Gerri A Harrison CFP EA replied 5 years ago.

Gerri A Harrison CFP :

If you have formed a legal corporation you are required to file a tax return even if you have no income. There is a mandatory filing requirement simply because you are in business. If you have no income or have enough expenses to offset the income you may owe no tax but are still required to file the tax return.

Customer:

There are people on our board of directors that are under the impression that a tax return does not have to be filed unless we have more than a certain amount of income. Can you please point me to the specific IRS document that states it is mandatory regardless of income?

Gerri A Harrison CFP :

If you go into the instructions for the 1120, which is the corporate tax return instructions and look under the "Who must file" section it clearly states that every corporation must file a return

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