miatax Posted March 16, 2009 Report Share Posted March 16, 2009 Hi: Do I need to file zero 1120s if there was no activity for 2008? Client doesn't have money and I wouldn't feel right charging for a zero return. What should I do? Thank you. Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted March 16, 2009 Report Share Posted March 16, 2009 Hi: Do I need to file zero 1120s if there was no activity for 2008? Client doesn't have money and I wouldn't feel right charging for a zero return. What should I do? Thank you. I would just submit the the zero return along with the first return he has any activity and somewhat charge him for your work all together. A client might may think a zero return should be simple to due, but he doesn't know you have to set it up, put in the assets.... Quote Link to comment Share on other sites More sharing options...
miatax Posted March 16, 2009 Author Report Share Posted March 16, 2009 The company had business in 2007 - the first year and the 1120S was filed. It's only in 2008 that there was no activity. There are no assets either... Quote Link to comment Share on other sites More sharing options...
JohnH Posted March 16, 2009 Report Share Posted March 16, 2009 If you don't file a return and it's later determined that one is due, there could be a penalty of $85 per month per shareholder with a maximum of 12 months. I don't see any exception in the rules for "no activity" returns when the corp still exists, and it would be very hard to explain a $1,020 penalty to the client. Not sure I'd want to take that chance. Quote Link to comment Share on other sites More sharing options...
RitaB Posted March 16, 2009 Report Share Posted March 16, 2009 John is right, absolutely do the return. Should not be a great deal of work since you did the return last year. If you really think they have no money (you might be surprised when you go out to eat Friday night and run into them or see what they're driving), just don't charge. Quote Link to comment Share on other sites More sharing options...
miatax Posted March 16, 2009 Author Report Share Posted March 16, 2009 Thank you.. Also, I've had efile message ' transmitted to efc' since last night. I'm getting a little nervous as I just efiled an 1120 but I'm scared it may reject for some dumb reason and I don't want the return to be late... should i e-file an extension just in case? Even my extensions have not been accepted yet..... Quote Link to comment Share on other sites More sharing options...
JohnH Posted March 16, 2009 Report Share Posted March 16, 2009 I file extensions on all 1120S returns, even those I've already completed. Too many ways things can go wrong. Quote Link to comment Share on other sites More sharing options...
OldJack Posted March 16, 2009 Report Share Posted March 16, 2009 If you don't file a return and it's later determined that one is due, there could be a penalty of $85 per month per shareholder with a maximum of 12 months. I don't see any exception in the rules for "no activity" returns when the corp still exists, and it would be very hard to explain a $1,020 penalty to the client. Not sure I'd want to take that chance. You have to file or you could be subject to the penalty. 1120S Instructions: Who Must File A corporation or other entity must file Form 1120S if (a) it elected to be an S corporation by filing Form 2553, ( b ) the IRS accepted the election, and ( c ) the election remains in effect. Quote Link to comment Share on other sites More sharing options...
miatax Posted March 16, 2009 Author Report Share Posted March 16, 2009 Thank you guys!! Quote Link to comment Share on other sites More sharing options...
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