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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15192
Experience:  15years with H & R Block. Divisional leader, Instructor
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Hi Robin: We marked the 2011 1120 as "Final" and also submitted

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Hi Robin:
We marked the 2011 1120 as "Final" and also submitted 966, issued 1099-Div (Dissolution Dividend) with the IRS. We did NOT do any Business in 2012.
But the Corp has not been dissolved with CA-SOS due to issues with the state - and CA is asking us to file 2012 and 2013 return for the Corp to be in good standing. Is there any way around this ?

Alternately can we resume business in this Corp ? What do we need to do to revive the Business from the Federal perspective ?
thanks,
vivek.

Robin D. :

Hello and thank you for using Just Answer,
There are a number of ways to correct the Final marking of the filed federal return. You can file an amended Form 1120S return to change the final box on your prior return, you could also just call the IRS business help line and explain to them the situation and they will re-activate your filing requirements so that the corporation is shown as an active filer again, or you could attach a note to the next Form 1120 you file stating that the final box was marked in error on the last return.

Robin D. :

CA requires that the SOS be notified or the CA corp is not final for state purposes.

Robin D. :

Unfortuantely, CA can and does require the filing of the returns.

Robin D. :

My goal is to give you excellent service. If you are satisfied, please rate me. If you have follow-up questions on this same topic, use the reply box below. To start a new conversation with me on a new topic request me again.

Customer:

We were late in complying with some of the state requirements and therefore the dissolution request to CA-SOS. We got back the dissolution request saying Corp is suspended. So I called FTB and they said file returns for 2012 and 2013 before you can dissolve.

Customer:

and pay Taxes($800 min for CA), Interest and Penalties for 2012

Customer:

Is there any way around these requirements for CA dissolution ?

Robin D. :

Only the SOS could advise if under the specifics the corporation could be reinstated without paying the penalty. The fees would most likely not be over looked but of course the interest would be lessened if they do not require the penalty.
Unfortunately you will need to get the corp reinstated so you can dissolve it properly.

Robin D. :

Under CA rules you would have to



  • File all delinquent tax returns.

  • Pay all delinquent tax balances, including penalties, fees, and interest. (you can request to have the penalty abated)

  • File a revivor request form.

Customer:

My first preference is to dissolve.

Robin D. :

Of course

Customer:

w/out paying any additional taxes to CA

Robin D. :

But to do so you would have to follow the steps and as I said you can ask for abatement of the penalty.

Customer:

I did but they are not budging, that's why I am here getting another opinion

Robin D. :

If you made your request and SOS denied it then I am afraid they have the last word on that. The steps to dissolve are under the CA law.

Customer:

Since it is not yet dissolved, I am thinking (just maybe ???) to continue running the Corp

Customer:

In this case does it matter that the 966, 1099-Div was filed along with the return ?

Robin D. :

The state would still require that you reinstate the standing of teh corp. This too would require that you file teh outstanding returns and fees would apply.

Customer:

Yes, I do understand that.

Robin D. :

Good

Customer:

For Federal purposes: Does it matter that the 966, 1099-Div was filed along with the return ?

Robin D. :

To start doing business again, no it should not matter. You would be better to call the business line though for the IRS. They can assist you in changing the mark of final return on the last form quicker.
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Customer:

ok, thanks!!

Robin D. :

You are most welcome

Robin D. :

Your positive rating is always thanks enough.


 

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