Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

I have a S-corp that made around 140K, in 2012, after expenses.

Customer Question
I found my CPA had...
I have a S-corp that made around 140K, in 2012, after expenses. I found my CPA had forgotten to file the tax returns (though the statements etc. were prepared). 2013/14/15 revenues will be zero.
is there any way to reduce the tax burden ? I get paid 60K salary and the rest in distributions. Can I somehow use the past 3 yrs to reduce the tax burden(get paid some small amount etc.)
Submitted: 3 years ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 20 minutes by:
5/24/2015
Tax Professional: PDtax, Certified Public Accountant (CPA) replied 3 years ago
PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 5,033
Experience: 35 years tax experience, including four years at a Big 4 firm.
Verified
Welcome to the site. I'm PDtax, and will be helping you today.
There might be some way to smooth out the income timing, but I would need to know more about your business, your income, and any opportunities to defer income.
I might consider looking at soiling your S election, so you could use lower brackets.
Can we also discuss how you lived during 2013, 14, 15? If you had other income in '12 or other years, the tax rates might be substantial.
Typically, I would ask for a substantial premium to explore this kind of tax planning, simply because it is worth more than $32. I will ask for a price bump, but not the full value of what you are asking for.
Accept, and we can work on this tomorrow morning.
PDtax
Ask Your Own Tax Question
Customer reply replied 3 years ago

I think for something that detailed, I would prefer someone local that I can meet.

Tax Professional: PDtax, Certified Public Accountant (CPA) replied 3 years ago
I will opt out.
Ask Your Own Tax Question
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 3 years ago
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,203
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified
Hi,
Yes, (and I don't believe that this requires something as "creative" as soiling your S-Corp election.
Have your CPA get them done (or honestly, look at someone different, if this person actually FORGOT to file).
If there was no revenue but costs still ensued, then you should have losses for each of those years.
As this flows to your personal return via the K-1, you (given the information you've provided) may have a Net Operating Loss (more loss than income).
If a taxpayer is taxed during profitable periods without receiving any tax relief (a refund, or lowered tax liability, for example) during periods of Net Operating Loss, an unbalanced tax burden results. So Congress allows taxpayers to use the losses in one year to offset the profits of other tax years.
The basic rules for using an NOL are as follows:
*Carry the amount back to the preceding two tax years and apply it against any taxable income, which can generate an immediate tax rebate. You can waive this action and instead proceed directly to the next step; if so, attached a statement to your tax return in the year in which the NOL was generated, documenting the waiver.
*Carry the amount forward for the next 20 years and apply it against any taxable income, which reduces the amount of taxable income in those years.
*After 20 years, any remaining NOL is canceled.
Working through that, and the detail it requires, as it relates to your specific situation is not reasonable in this venue.
But I would sit down with a CPA, EA or Tax attorney and ask whether applying the NOL back to previous years and then having the unusable amount in hand to apply to future profitable years might make some sense.
Even if it can't be carried back, if your are consinuing in business, these 2013/14/15 losses can reduce FUTURE tax liabilities.
There is a statute of limitations that applies to amending past returns for refund purposes, that starts with the due date for your return.
So for 2012, for example, your due date was Apr of 2013. That means you can still amend for refund purposes until April of 2016, so IF the numbers support this, you need to be aware of that time constraint.
I've covered a couple of things at a very high level (big picture, looking at the forest, not the trees) You need to sit down with someone and ask them to crunch the numbers are it relates to 2013 and 2014 creating NOLs that can be carried back to 2012, as a place to start.
Ask Your Own Tax Question
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 3 years ago

P.S.

So sorry, I meant to provide this link:

http://www.investopedia.com/terms/n/netoperatingloss.asp

Again, only a conceptual (high level) overview.

Don't know enough about your expenses in those yeaars to know how well it applies.

...but a good place to start

Lane

Ask Your Own Tax Question
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 2 years ago
Hi,
… just checking back in to see how things are going.
Did my answer help?
Let me know…
Lane
Ask Your Own Tax Question
Was this answer helpful?
Ask Lane Your Own Question
Lane
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,203
14,203 Satisfied Customers
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986

Lane is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,495 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,272 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
I am trying to calculate the tax burden for the sale of my
I am trying to calculate the tax burden for the sale of my mother in law's house. She is the only person on the deed and bought it for 135k in 1987. She has Made numerous improvements and repairs over… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
IRS Refund - A 2017 tax return was filed and the refund was
IRS Refund -A 2017 tax return was filed and the refund was applied to 2018. Is there a way to request the refund to be returned instead of applied to next year?Thanks, JW… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,272 satisfied customers
My taxable income is 49,000 $ yet the tax worksheet shows
My taxable income is 49,000 $ yet the tax worksheet shows 1800$ due and I cant figure how to get into Turbo Tax smart work sheet and enter 6000.00 $ which is the correct amt due on the Fed return … read more
Mark Anderson
Mark Anderson
Attorney
Doctoral Degree
10 satisfied customers
Are SREC's (Solar Renewable Energy Credits) taxable income?
are SREC's (Solar Renewable Energy Credits) taxable income? What if you have not yet finished payments on your solar panels? … read more
taxmanrog
taxmanrog
Master\u0027s Degree
938 satisfied customers
Is there a statute of limitations on fraud, court cases? A
is there a statute of limitations on fraud, court cases? … read more
Mark Anderson
Mark Anderson
Attorney
Doctoral Degree
10 satisfied customers
If my taxable income for 2018 will be approx. $38,000, what
If my taxable income for 2018 will be approx. $38,000, what is my tax liability filing single. ( was widowed in late 2016. When I filed for 2017, my CPA had neglected to tell me there were different t… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,272 satisfied customers
I just filed a client's tax return for 2014. Tax return
I just filed a client's tax return for 2014. Tax return filing was due 4/15/2015...filed 4/17/2018. - just met the 3 year filing window. If I need to amend, is there a new window of time to do this?… read more
abci168
abci168
Principal
27 satisfied customers
If there is no federal tax liability in 2016 because there
If there is no federal tax liability in 2016 because there was no income in 2016, what is the minimum estimated tax that needs to be sent with the extension for 2017 to avoid a penalty?… read more
abci168
abci168
Principal
27 satisfied customers
VA income tax return form 760, Line 16, “ Taxable Income -
VA income tax return form 760, Line 16 , “Virginia Taxable Income - Subtract Line 15 from Line 9” what are the two bubbles “DTD” and “LTD” ? Should I fill in one ?… read more
PDtax
PDtax
Certified Public Accountant (CPA)
5,033 satisfied customers
Looking for estimated tax rate for 500,000 income in 2017.
looking for estimated tax rate for 500,000 income in 2017 … read more
Richard
Richard
Tax Attorney
Doctoral Degree
4,495 satisfied customers
I am not planning on goofing up my tax return, but what are
Hi, I am not planning on goofing up my tax return, but what are the consequences if after an audit you have been found in error in some regard? Can you please explain how penalties, Etc are calculated… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,119 satisfied customers
I am doing a partnership and personal return for a man and
I am doing a partnership and personal return for a man and his father. The man is telling me he and his father have agreed for partnership to go from being about 90% owned by father to 90% owned by hi… read more
PDtax
PDtax
Certified Public Accountant (CPA)
5,033 satisfied customers
My only taxable income is $2287.10 from IRA distribution. I
My only taxable income is $2287.10 from IRA distribution. I am rated 100% VA disabled. My social security and VA pension are non-taxable. I have no other reportable income. How do I determine if I owe… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,272 satisfied customers
My mom is a dependent on my tax return with no work income.
Hello, my mom is a dependent on my tax return with no work income. She does receive few thousands of social security income. She received form 1095-A and says she is required to file a tax return. Whe… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I just want to know where to mail my income tax return.
I just want to know where to mail my income tax return. … read more
Carter McBride
Carter McBride
LLM
1,060 satisfied customers
My MO income tax return was returned to me that I was not
My MO income tax return was returned to me that I was not getting any return I fax them my 1099 and a copy of the rent I paid in 2017 I am 68 years old could you check and see if that was received ant… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Is there a statute of limitations on owing State taxes -
Hello - is there a statute of limitations on owing State taxes - Maryland … read more
Carter McBride
Carter McBride
LLM
1,060 satisfied customers
Looking for the statute of limitation on the collection of
looking for the statute of limitation on the collection of WI taxes. in particular for withholding taxes from 21 years ago … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x