Have a Tax Question? Ask a Tax Expert
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.
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?
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