Corporate Myths About Filing Tax Returns - and Extensions are due!2009-03-13 by
Someone brought something interesting to my attention yesterday. And he made a good point. I’ve noticed it, too, especially in the nature of questions I get from readers who’ve set up a quickie corporation.
Folks who’ve incorporated, but never really got around to using the corporation seem to think they don’t have to file anything. Uh, unclear on the concept? Look, you set up a corporation. You alerted IRS that you exist by getting your federal ID number. IRS is looking for paper. They don’t know that you didn’t do a thing; that you never even opened a bank account; that you didn’t sell a dime’s worth of products or services.
How is IRS supposed to know that? Only if YOU tell them. That means you must file a tax return. Even if it’s all zeroes. And you have to file it by March 16th this year.
If you don’t really know what to do, at the very least, buy yourself 6 months of breathing space. File an extension. That would be Form 7006. It’s automically approved. No explanations needed. That will give you time to get advice and help, if you need it.
To make sure that your extension is received by the IRS on time, the best way to do this is to file electronically. Get 25% of by using this link with coupon code taxmama25. http://snurl.com/filelater
For those with corporations that have actual activity – like, running a real business, you may find yourself having to pay money with your extension. http://snurl.com/filelater is designed to let you pay electronically and to get a receipt for the payment. The neat thing about the way they’ve set up the payment system is that the money comes directly from your bank, instead of via a credit card – no ‘convenience fees’!
Although many states accept the IRS extension, the state in which you’ve incorporated may not. Look up your state’s rules here. You’ll also find links to the right state forms.
Incidentally, you can use http://snurl.com/filelaterto file your personal extensions and get an electronic receipt, too. Those are be due on April 15th.