Question

S-Corp Does the law require an S-Corp. to file with the IRS even if it has no income?

Forum|Forum|2 years ago
December 7, 2023
3 replies
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Does the law require an S-Corp. to file with the IRS even if it has no income?

A

Anonymous_

Employee

@brotherrolf3212 wrote:

Does the law require an S-Corp. to file with the IRS even if it has no income?

Yes.

See https://www.irs.gov/instructions/i1120s#en_US_2021_publink11515kd0e292

Critter-3

Do you have to file a tax return for an S Corp with no income?

S Corp owners must file Form 1120-S, U.S. Income Tax Return for an S Corporation. Both C and S Corps follow the same guidelines for filing taxes with no income. If you had no income, you must file the corporation income tax return, regardless of whether you had expenses or not. https://smallbusiness.chron.com/need-file-initial-return-s-corporation-activity-75813.html

O

Opus 17

Employee

Even if you don't have income, you may have expenses, including depreciation on prior assets, and that needs to be accounted for and tracked. You may have a loss that can be carried forward, but it needs to be reported and filed. If the business has no activity because it is defunct/ended, then you need to file a closing return to close the business.

A

Anonymous_

Employee

For clarity: Even if the corporation has no expenses, depreciation, assets, carryforwards, et al, an 1120-S still needs to be filed as long as the S corporation election remains in effect.

Returns (Form 1120-S) can continue to be filed, regardless of activity, as long as the election remains in effect.