B. Jani Posted March 4, 2008 Report Share Posted March 4, 2008 Hi All: I have a client who created a corporation in June 2005 thru lawyer. After that he totally forgot about it. No activity from day one is done thru corporation. Now he wants to close the corporation. What should I do? I do his and his families personal returns and few corporation returns but never had case like this. Would some one please guide me. Thanks in Advance. B Jani Quote Link to comment Share on other sites More sharing options...
RoyDaleOne Posted March 4, 2008 Report Share Posted March 4, 2008 I would recommend you do nothing. If, any inquiries respond with "Corporation never activated". Quote Link to comment Share on other sites More sharing options...
OldJack Posted March 5, 2008 Report Share Posted March 5, 2008 >>After that he totally forgot about it.<< Well... I don't buy that story. He should probably ask the attorney what to do. If he files nothing the state will probably cancel his charter and that will be the end of it. The IRS may send him 1120 forms and to get rid of them he could check the box final return sign and send in. Quote Link to comment Share on other sites More sharing options...
jainen Posted March 5, 2008 Report Share Posted March 5, 2008 >>that will be the end of it<< ... unless New York decides to collect the minimum franchise tax for each year until he formally dissolves the corporation. Quote Link to comment Share on other sites More sharing options...
michaelmars Posted March 5, 2008 Report Share Posted March 5, 2008 Jainen, the don't do that anymore starting with this year. No more dissolutions, just mark return final!!!!! YEAH Quote Link to comment Share on other sites More sharing options...
jainen Posted March 5, 2008 Report Share Posted March 5, 2008 >>No more dissolutions, just mark return final!!!!!<< Well, that sounds pretty good, but the discussion in this thread is about not filing any return, final or otherwise. Quote Link to comment Share on other sites More sharing options...
OldJack Posted March 5, 2008 Report Share Posted March 5, 2008 >>this thread is about not filing any return, final or otherwise<< Well.. I first suggested he ask his attorney since he obviously takes his attorneys advice. LOL Quote Link to comment Share on other sites More sharing options...
B. Jani Posted March 6, 2008 Author Report Share Posted March 6, 2008 Client did talk to his attorney. Attorney advised that he should have filed all the returns. That is why I asked this question. Attorney or client even did not made selection for Small Corp. Should I file all back (05, 06 & 07final) Federal and NY or just this year file FINAL and hopefully this will go thru. I created final return for 07 and eventhough all the numbers are ZERO, NY CT 3 still shows $800 minimum tax. Please guide me. Thanks. B Jani Quote Link to comment Share on other sites More sharing options...
michaelmars Posted March 6, 2008 Report Share Posted March 6, 2008 no getting around the $800 unless the client recalls that he got 2000 worth of stock in exchange for stock pmt receivable. or did he pay for the incorp, nys fees and legal fees? the assets would negate the 800 fee. <wink wink> Quote Link to comment Share on other sites More sharing options...
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