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JKCPA
JKCPA, CPA
Category: Tax
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Experience:  CPA with tax experience.
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What's the late filing penalty for C Corp that made no money?

Resolved Question:

What is the late filing penalty for C Corp that made no money? Would there be taxes due?

Submitted: 5 years ago.
Category: Tax
Expert:  JKCPA replied 5 years ago.

If the Form 1120 for the C corporation had no tax liability due to not having any profit, then the penalty for late filing is zero.

The late filing penalty on a C corporation (Form 1120) is solely based on the amount of tax owing. The penalty is 5% per month or part of month that the return is late up to a maximum of 25% tax owed. If there is no tax owed, no penalty is charged. However, a corporation that does not file taxes for multiple years in a row may be subject to de-registration.

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