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Business filing chapter 7 bankruptcy, has not filed Tax

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Business filing chapter 7...

Business filing chapter 7 bankruptcy, has not filed Tax Returns as of yet due to filing won't actually occur for another two weeks. What should we do in regards ***** ***** the Tax? We can't apply for an extension because there's not going to be any money owned, I don't think. Any advice would be appreciated.

Accountant's Assistant: The Accountant will know how to help. Is there anything else important you think the Accountant should know?

We are an LLC filing as S-Corporation. Cannot cancel LLC until the bankruptcy matter is filed showing the debt. Please help very confusing

Submitted: 5 months ago.Category: Tax
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Answered in 2 minutes by:
2/27/2018
Tax Professional: Dr. Fiona Chen, Certified Public Accountant (CPA) replied 5 months ago
Dr. Fiona Chen
Dr. Fiona Chen, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,446
Experience: Former IRS Revenue Agent
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I'm Fiona, former IRS revenue agent. I am looking at your question and will get back to you soon. Fiona Chen, MPA, Ph.D., CPA, ABV, CFF, CITP,IMTA

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Tax Professional: Dr. Fiona Chen, Certified Public Accountant (CPA) replied 5 months ago

Dear Customer,

Unless you are sure your 2017 tax return will be filed by March 15, 2018, you have to file an extension to buy time until September 2018.

Otherwise, the IRS S Corporation failure to file penalty is horrible. That is $195 per share holder per month up to 12 months. It is not whether you own or not. S corporation never (or seldom) has tax liability any way.

You have to file tax return for bankruptcy filing purpose anyway. So, 2017 tax return will not be your last tax return.

File it and file the application for automatic extension any way.

Please feel free to follow up.

Regards,

Fiona

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Customer reply replied 5 months ago
No, I'm not sure the 2017 taxes will be filed by March 15th, they won't be filed on time.
Tax Professional: Dr. Fiona Chen, Certified Public Accountant (CPA) replied 5 months ago

Dear Customer,

Then, you have to file the extension application using Form 7004.

https://www.irs.gov/forms-pubs/form-7004-application-for-automatic-extension-of-time-to-file-certain-business-income-tax-information-and-other-returns

Please feel free to follow up.

Regards,

Fiona

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