S Corporation Tax Filing Requirements?
Posted on January 25, 2009 by admin
Brian asked:
If a New York S Corporation has done no business whatsoever in a tax year is it still a requirement to file?
If a New York S Corporation has done no business whatsoever in a tax year is it still a requirement to file?
Yes, you need to file even if there is no activity. I believe there is still a minimum tax due.
Hello, Brian! The IRS instructions for Form 1120S state that a corporate return must be filed for your S corporation for as long as the S election is still effective.
The instructions for New York Form CT-3-S-I (S-corp return) also state the same, and (as tma said) there is a minimum corporation franchise tax as long as the New York S election is in effect. I assume from the fact that it did no business in 2006 that is a small business; if so and if the corporation had assets over $1,000, your minimum franchise tax would be $100. If there were under $1,000 each of assets, gross payroll, and gross receipts, the minimum tax jumps up to $800 (see Page 5 of the form instructions for details).
If the corporation is defunct, you should consider dissolving it immediately to avoid any further minimum taxes. The final two links provide details if you need them. Good luck!