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.