My husband has a corp which has been dormant for many years. We haven't filed zero tax returns. We would like to start using it, do we have to back file them?

Forum|Forum|4 years ago
April 1, 2022
1 reply
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We want to start using the corp. For state taxes we just need to pay the franchise tax to start using it for business, but what about federal? It has been dormant for years, in active... but we didn't file any tax returns, not even zero tax returns. Should we back- file taxes for a certain number of years?

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ThomasM125

Level 15

If it is an S corporation, you may be subject to significant fines if you file a tax return late, so that is not a good idea if you can avoid it.

Technically, you need to file a corporate tax return for any year you are in business. Being in business may be as simple as being legally registered as a corporation or having corporate assets, even if you have no income.

Since there is no penalty for filing a late C corporation return, you are OK not filing the back returns from a penalty perspective.

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