Does an S Corp Have to File a Tax Return If No Income?

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Overview of S Corporation Tax Filing

S Corp owners must file Form 1120-S, U.S. Income Tax Return for an S Corporation, regardless of income or expenses.

Deadlines and Extensions

  • Deadline: S corp tax return due date is March 15.
  • Extensions: Six-month extension available via filing IRS Form 7004.

Refunds and Final Returns

  • Refunds: Shareholders receive refunds if total payments exceed tax liability.
  • Final Return: File Form 1120-S for the year of business closure.

Filing Zero Income Tax Return

  • No income, no expenses: File Form 1120-S to create a record of profits and losses.

Penalty for Non-Compliance

  • Failure to File: Monthly penalty of $195 per shareholder for incomplete or late filing.

Filing Requirements for Corporations

  • No Income: Must file tax return regardless of expenses.
  • No Activity: Use IRS Form 1120 for corporations with no business transactions.

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