I have a home based business - do I still need to file corporation tax returns?

[kosmoboy1965]

I've filed personal taxes to include my business (S-Corp) for several years.  I am being told that I should have been filing Corporate Taxes all this time.  This is the 1st time I've ever been told this. My accountant set my business up this way in 2004 when I became incorporated.

[VolvoGirl]

Oh you have a problem now.  You needed to be filing a separate 1120 S  Business return and then entering a K-1 into your personal return.  Not sure how to fix that.  Someone else will know.  Maybe you should go to a local accountant to get it straightened out.  You never got any letters from the IRS about filing the 1120 S return?

[kosmoboy1965]

I have two salon locations ... second location acquired in 2017 and we had a tax office do our taxes last year.  Again, it was never mentioned.  And - no - I've never received anything from the IRS regarding the filing of the 1120S .... argg

[Anonymous · Accepted solution]

seek out the assistance of a tax professional. In this situation I would suggest a tax attorney   each year starting with the year of formation a S-Corp return should have been filed.  the IRS could impose penalties for failure to file.that could exceed $2,000 per year.   (not sure how far back it can go)   also,  you didn't take a salary from the corp which is another tax issue that could result in more penalties.          do not contact your accountant until you speak to an advisor 

[kosmoboy1965]

I have been paying myself ... I am a W-2 employee through the corporation set up as an officer?  I was incorporated in 2004.  Thanks for the advice, I will certainly look into this.