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Returning Member
posted Oct 27, 2021 4:35:55 PM

I started a sole business back in 2016 that didn't generate any income or expenses. Didnt file.however it did generate a lil income in 2021will i be in alot of trouble?

I started a sole proprietorship business back in 2016 that didn't generate any income or expenses..I have never filed..since the business was not running.. however it finally generated a lil income in 2021...what can I do?

0 3 565
3 Replies
Level 15
Oct 27, 2021 4:39:33 PM

How did you support yourself from 2016 to 2020?  see a tax pro to go over your situation.

 

Returning Member
Oct 27, 2021 5:42:32 PM

This was a side business...i have a w2 job. I do file for that

Level 4
Oct 28, 2021 11:30:56 AM

What did you set up for your sole business? Likely you were only required to file Sch C anyway. And if you had no income or expenses then there would be no requirement to file that. Just file the correct form in 2021 and report that income and any expenses related to the business. Unless there is a certain kind of legal entity the IRS does not require returns to be filed each year regardless of activity.