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Angie, Tax Preparer
Category: Tax
Satisfied Customers: 226
Experience:  Bookkeeping, Profit and Loss, Balance SheetsAll types of US Taxes, Tennessee taxes, Personal, business, payroll, sales tax etc.
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We have a small business (a C-Corp) that was registered with

Customer Question

We have a small business (a C-Corp) that was registered with $20 in 2015, but the business never started and therefore there was no expense or revenue. We did not file federal taxes by March 15, 2016. State taxes were done on time. I know that we still must file federal taxes but cannot afford to hire a tax professional. We also would like to close the business ASAP. What are our requirements from the IRS and how exactly should we file federal taxes now? Is it legal that we had no salary or any employee expenses at all?
Submitted: 1 year ago.
Category: Tax
Expert:  Angie replied 1 year ago.
It is legal that you had no income or expenses. But you do have to file the corporate tax return. You are subject to a failure to file penalty unless you filed for an extension. You will file a form 1120 for the corporate tax return. You can mark it as the initial and final return to close it with the IRS. You will also need to close it on the state level. There are private individuals who will do a zero corporate tax return for as little as $150. If you can't afford to have it done professionally, there are many software options that can walk you through the return. Since there was no income and expenses it should only take a few minutes.
Customer: replied 1 year ago.
Thanks for your response. We would like to get it done by a professional/individual to ensure that it is done properly, since we failed to file for an extension. Will there be a large penalty from the IRS in this case? If you know of anybody who does it for $150 or less, would you be able to give me the referral?
Expert:  Angie replied 1 year ago.
I can do them. I will be tied up until after the 18th because of the tax deadline. I work in a tax office and also do them from home on the side. As far as the penalty...I just checked C-corps who owe no tax do not have failure to file penalties, but s-corps do, it is a minimum of $195 per month late. Since you are a C you won't have to worry about that. If you'd like me to do the corporate return after the 18th,I am happy to help you.
Customer: replied 1 year ago.
Will you be able to do this for us and close/dissolve the business with the IRS at the same time for $150? I will bring this back to my other partner and confirm with you as soon as possible, but I think that April 18 should be fine.
Expert:  Angie replied 1 year ago.
Yes...however you will have to close the corporation with the state.
Customer: replied 1 year ago.
Can you please give me your email address? I will send you an email on Monday.
Expert:  Angie replied 1 year ago.