Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

My small company ceased operations in 2011. We filed taxes…

Customer Question
My small company ceased operations...
My small company ceased operations in 2011. We filed taxes at the end of 2011. There have been no business transactions since that time. There remains a balance sheet for the company. We have not considered any tax implications associated with the business for 2012, 2013 and 2014. How do I file taxes for these missing years?
Submitted: 2 years ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 14 minutes by:
6/28/2015
Tax Professional: Tax.appeal.168, Tax Accountant replied 2 years ago
Tax.appeal.168
Tax.appeal.168, Tax Accountant
Category: Tax
Satisfied Customers: 4,642
Experience: 3+ decades of varied tax industry exp. Tax Biz owner
Verified
Welcome. Thank you for choosing us to assist you. My name is ***** ***** my goal is to help make your life, a little... less taxing.
What is your business set up as? A C-corp, an S-corp, partnership, or LLC? If your business is a corporation, until you officially dissolve it, you are required to file a tax return, even id there have been no transactions. Some states require than an annual franchise tax be paid. In addition, if you are an S-corp, there is a steep penalty for not filing a return. I know that you stated that there have been no transactions, therefore, income tax would be due, but I am providing you with general information. SEE BELOW:
Filing Without Tax Due
If you file your S corporation income tax return late and no tax is due, the late filing penalty is $195 per month or for any portion of a month the return is late multiplied by the number of corporate shareholders. For example, if you have three corporate shareholders and the tax return is filed one month late, calculate the penalty by multiplying the $195 monthly penalty by the one month the return is filed late multiplied by your three shareholders. The total penalty is $585.
Filing With Tax Due
If you file your income tax return late and the S corporation owes taxes, the IRS imposes an additional 5 percent penalty on the unpaid tax for each month or portion of a month the return remains unfiled. For example, if your S corporation’s tax is $5,000, compute the penalty by multiplying the $5,000 by 5 percent to get $250. Now add the $250 penalty to the $585 late filing penalty for a total of $835. The maximum IRS-imposed penalty is 25 percent of the unpaid tax amount. The penalty and unpaid tax are added together to help determine how much you owe the IRS.
---------------------------
C-corp:
Failing to File
When you fail to file a Form 1120 by the deadline, the corporation is charged a monthly penalty that's equal to 5 percent of any income tax that remains unpaid. Moreover, the corporation will reach the maximum 25 percent penalty after the fifth month that the return remains unfiled. Even if the corporation wouldn't have reported any taxable income had the return been filed, the IRS will still charge a penalty of $100 once the return is more than 60 days late.
Let me know if you require further assistance with this matter.
Ask Your Own Tax Question
Customer reply replied 2 years ago
The company is an LLC out of California with my wife and I the only members. We have paid the annual franchise tax fees ( so I suppose there was a single transaction for the year).
Tax Professional: Tax.appeal.168, Tax Accountant replied 2 years ago
Hello again,
By default, a multi-member LLC is considered a partnership for tax purposes unless the Form 8832 was completed and you elected to be taxed as a corporation. There is a penalty for not filing the partnership return as well, even though no taxes were owed for the years. SEE BELOW:
(a) General rule
In addition to the penalty imposed by section 7203 (relating to willful failure to file return, supply information, or pay tax), if any partnership required to file a return under section 6031 for any taxable year—
(1)fails to file such return at the time prescribed therefor (determined with regard to any extension of time for filing), or
(2)files a return which fails to show the information required under section 6031, such partnership shall be liable for a penalty determined under subsection (b) for each month (or fraction thereof) during which such failure continues (but not to exceed 12 months), unless it is shown that such failure is due to reasonable cause.
(b) Amount per month
For purposes of subsection (a), the amount determined under this subsection for any month is the product of—
(1)$195, multiplied by
(2)the number of persons who were partners in the partnership during any part of the taxable year [1]
(c) Assessment of penalty
The penalty imposed by subsection (a) shall be assessed against the partnership.
REFERENCE SOURCE:
www.law.cornell.edu/uscode/text/26/6698
If the partnership has not been officially dissolved, you must file the tax returns for those years. The IRS will send you a bill as to how much you owe in failure to file fees.
You may be able to request an abatement of some of the penalties, but I doubt it if the IRS will abate all 3 years of penalties.
Ask Your Own Tax Question
Was this answer helpful?
Ask Tax.appeal.168 Your Own Question
Tax.appeal.168
Tax.appeal.168
Tax.appeal.168, Tax Accountant
Category: Tax
Satisfied Customers: 4,642
4,642 Satisfied Customers
Experience: 3+ decades of varied tax industry exp. Tax Biz owner

Tax.appeal.168 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
Filed Tax 2014 return by April deadline this year. Return
Filed Tax 2014 return by April deadline this year. Return was sent certified. Received letter from IRS saying I did not file and assessing me large dollar amount. It was my understanding I could file … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,272 satisfied customers
Texas Series LLC - Franchise Tax. Master LLC set up along
Texas Series LLC - Franchise Tax. Master LLC set up along with 1 sub-series that is running small business - revenue around $100K. No Franchise tax due but still have to fill out form. I understand it… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Got a multi member llc in TN. Filed the 2016 tax return
Got a multi member llc in TN. Filed the 2016 tax return (form 1065) by October 10, 2017. Filed all the personal returns for the members by October 15, 2017. Of course the partnership return was due by… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,119 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
Tax.appeal.168
Tax.appeal.168
Tax Accountant
4,642 satisfied customers
How I can file for an extension to file the tax return for
How I can file for an extension to file the tax return for 2017. … read more
Dr Arthur Rubin
Dr Arthur Rubin
Doctoral Degree
24 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
Owner
Master\u0027s Degree
1 satisfied customers
If I'm filing an extension on my tax individual tax return
If I'm filing an extension on my tax individual tax return and don't know my tax liability, payments, balance due, or amount I'm paying for 2017 on the "Part II Individual Income Tax" section - what s… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,119 satisfied customers
I need to file an extension for my LLC and individual 2017
I need to file an extension for my LLC and individual 2017 tax return. What forms do I need?… read more
Cole Parker
Cole Parker
Principal/CPA
Bachelor\u0027s Degree
103 satisfied customers
I need to file 2015 tax return. I have filed extensions
I need to file 2015 tax return. I have filed extensions until now because I am owed a return, yet, am I able to apply for an extension, or is the time limit up after 3 years … read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,119 satisfied customers
Finally filing 2016 income tax returns. Filing as "married
Finally filing 2016 income tax returns. Filing as "married filing separate return". Did not live with spouse at all in 2016. What is she on my return: an exemption? a dependent? an alimony expense onl… read more
Tax.appeal.168
Tax.appeal.168
Tax Accountant
4,642 satisfied customers
Our CA franchise taxes 800.00 for our LLC. are also due. Are
.Our CA franchise taxes 800.00 for our LLC. are also due. Are we able to ask for an extension on the 800.00 dollars. from my understanding CA requires all small businesses to pay the 800.00 business tax … read more
Tax.appeal.168
Tax.appeal.168
Tax Accountant
4,642 satisfied customers
Where do report for Partnership (LLC) returns using Form
Where do report for Partnership (LLC) returns using Form 1065 income recipient from taxable federal grant? Specifically, 1099-G, Box 6.… read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
1,027 satisfied customers
This is in regards to a partnership tax return Form 1065 and
This is in regards ***** ***** partnership tax return Form 1065 and potentially amending it. The only reason for the amendment would be the distribution information on the K-1s was incorrect. Nothing … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I was ask to prepare a partnership's tax return for 2015 &
I was ask to prepare a partnership's tax return for 2015 & 2016. It's my first time doing this and need some advise. This is a used car dealership with three (3) partners. According to the partnership… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
California Franchise Tax Board Corp Business Entity
California Franchise Tax Board Corp Business Entity Collections. Just filed 2015 & 2016 form 100, but they haven't been processed yet. They have filed a lien as they imputed the corporation's tax liab… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,119 satisfied customers
How to request an extension of Tax returns on LLC single and
how to request an extension of Tax returns on LLC single and multi members, C-Corp - S-corp and personal?step by step please… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,119 satisfied customers
Penalty for late filing of partnership LLC tax return, not
Penalty for late filing of partnership LLC tax return, not eligible for Rev Proc 84-35 relief because one of the partners is a foriegner… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,119 satisfied customers
For a ny state partnership tax return, if you file an
For a ny state partnership tax return, if you file an extension but don't pay anything and then end up owing a lot. Do they still recognize the extension or do they charge a failure to pay penalty (fo… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 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