File 2017 final tax return for my s corp that is dissolving in Jan 2018. Do I need to file final tax return for 2018 again?

[liaoweien]

I incorporated an S corp on 11/27/2017 in California due to wrong advices from my CPA.  No income, only $700 dollars expense in 2017.  My S corp will be dissolved around 1/20/2018 (I have submitted short form dissolution to california FTB).  Can I just file FINAL tax return for 2017 tax year? Do I have to file any tax return again for 2018 tax year for period (1/1/2018-1/20/2018) assuming no income, no expense?  Thanks for answering my question.

[EricZ · Accepted solution]

No, you do not have to final a return for 2018 provided you do not have any income, expenses, or conduct business in 2018.  

File the appropriate dissolution, surrender, or cancellation forms with the California Secretary of State ("SOS") within 12 months of filing your final tax return. To get the applicable forms, go to the SOS website at sos.ca.gov, and search for terminate entity, or call 916.657.5448.

For more information regarding closing a business in California, please visit the following website:

https://www.ftb.ca.gov/businesses/faq/Closing_a_Business_Entity.shtml

[liaoweien]

@TurboTaxEricZ   Thank you so much for your reply.  Other CPAs told me that I still need to file a short year tax return for 2018 before 4/20/2018 even though there is no business happened during 1/1/2018- 1/20/2018.  I am not sure if that is true.

[EricZ]

Please visit the following website for additional information on closing a business in California:

<a rel="nofollow" target="_blank" href="https://www.ftb.ca.gov/businesses/faq/ab2341faq.shtml">https://www.ftb.ca.gov/businesses/faq/ab2341f...>

[liaoweien]

@TurboTaxEricZ  I have read the FAQ before, but I cannot find the answer for this situation.

[EricZ]

To avoid an additional year of minimum franchise tax or annual tax, AB 2341 provides that you have 12 months from the date you file your timely final return to file your termination documents with SOS.

[EricZ]

This should provide the guidance for which you are looking.

[liaoweien]

@TurboTaxEricZ Thank you very much for your help.  I really appreciate it.