ILLMAS Posted November 8, 2017 Report Share Posted November 8, 2017 Has anybody ever amended an 1120S that had no activity, later to find out it did have activity? TP was planning on reporting on Sch C because the business was being operated as a SE business but now has a change of heart. What explanation can be used? Quote Link to comment Share on other sites More sharing options...
rfassett Posted November 8, 2017 Report Share Posted November 8, 2017 The self employment tax - the great equalizer. I would chase that client away. It sounds like he wants his cake and eat it too. What are the facts? Is he a sole proprietor or is the business being operated as a corporation? That should not be hard to ascertain. When you determ8ne that, the facts will dictate the filing requirements. Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted November 9, 2017 Report Share Posted November 9, 2017 Ask for bank accounts and other records in the corporations name. If they don't exist, then the corporation has no activity. Always ask for copies of titles for 'corporate' vehicles. Some salesman talk purchasers out of registering a vehicle in the entity's name because they can get better interest rates. Quote Link to comment Share on other sites More sharing options...
Catherine Posted November 9, 2017 Report Share Posted November 9, 2017 50 minutes ago, Abby Normal said: better interest rates Or cheaper insurance if the vehicle is in a person's name. Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted November 9, 2017 Report Share Posted November 9, 2017 1 hour ago, Catherine said: Or cheaper insurance if the vehicle is in a person's name. Yeah, but if your insurance company finds out you're using it for business without properly disclosing that, then your claims can be denied. 1 Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted November 9, 2017 Report Share Posted November 9, 2017 22 minutes ago, Abby Normal said: Yeah, but if your insurance company finds out you're using it for business without properly disclosing that, then your claims can be denied. I always wonder about the teenagers that I see working for Papa John's or Domino's - have they (or their parents) told the insurance company they are driving around with a lighted sign on their car delivering pizza? 1 Quote Link to comment Share on other sites More sharing options...
jklcpa Posted November 9, 2017 Report Share Posted November 9, 2017 27 minutes ago, Gail in Virginia said: I always wonder about the teenagers that I see working for Papa John's or Domino's - have they (or their parents) told the insurance company they are driving around with a lighted sign on their car delivering pizza? If the delivery person has a wreck while on company time, that ultimately should be covered under the company's insurance. The employee would have to give his/her insurance card at the time of the wreck, but guaranteed that his/her personal insurer would be assigning that claim against the company's insurance. This is entirely different than putting the company car in personal name to get a cheaper rate that would be fraud. In a similar vein, my office has a separate policy that covers people on my property for business that my homeowner's policy does not cover. And...we are waaaaaaaay off-topic. 2 Quote Link to comment Share on other sites More sharing options...
Catherine Posted November 9, 2017 Report Share Posted November 9, 2017 2 hours ago, Abby Normal said: Yeah, but if your insurance company finds out you're using it for business without properly disclosing that, then your claims can be denied. Well of COURSE - but do people think of pesky things like that when faced with car insurance at $1,000 rather than $6,000? I mean, c'MON now! 1 1 Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.