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Do I need to file a tax return for a S-Corporation with no activity?
Posted by admin on May 18th, 2009
TSF asked:
My wife and I are the sole owners of a S-Corporation that had no activity during 2007 except for like $10 in interest income. Do I need to file a tax return for 2007? If so what forms do I need to fill out? Thanks.
My wife and I are the sole owners of a S-Corporation that had no activity during 2007 except for like $10 in interest income. Do I need to file a tax return for 2007? If so what forms do I need to fill out? Thanks.
Corps must file tax returns every year, regardless of revenue, profit or loss. You file Form 1120-S, same as always.
Yes sir, you do. There are several reasons for this. One, you and your wife have to pay taxes on that 10$. So what happens is that you each get a K-1 stating that you got 5$ interest income from you S Corp. The second reason that you file is because you are probably still required to pay your state’s minimum taxes, which are deductible on the federal return. This in turn can create a decuctible loss on your 1040. If you want, you can email me with further specifics