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

[brotherrolf3212]

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

[Anonymous_]

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@brotherrolf3212 wrote:

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

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Yes. 

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

[Opus 17]

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.

[Anonymous_]

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.

[brotherrolf3212]

   Thanks for the input.   No income, no expenses, but hope to get it going in the future.

[brotherrolf3212]

The IRS still does not answer the question specifically. 

[Opus 17]

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@brotherrolf3212 wrote:

   Thanks for the input.   No income, no expenses, but hope to get it going in the future.

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Hope to get it going?  A startup?

There are special rules for startup expenses.   Start by reading here,

https://www.irs.gov/newsroom/heres-how-businesses-can-deduct-startup-costs-from-their-federal-taxes

https://www.irs.gov/publications/p583

https://www.irs.gov/publications/p535

You should probably hire an accountant or other tax expert to help you set up the business, accounting rules that apply to you, advise you on the law, and so on.  Owning an s-corp (even if there is only 1 shareholder) can be very different than running a single member LLC or sole proprietorship.  You would probably benefit from expert professional advice to get you started on the right track. 

[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