Hello,

I am president of an s-corporation in Florida and I have not had any income or expenses as I did not use that company yet. I would like to make sure I have filled in properly my 1120S income tax return.
Having had no activity I have put zeros in all the fields and I am declaring $0 for tax due.
My questions are :
Is this ok?
Is there any other form or schedule that I have to send in with?
What about my personal 1040EZ income tax return? Do I have to mention anything about the s-corp. on it?
If I had had some income, where would I have mentioned it?
I thank you very much for your help.

You are correct in sending in an 1120S with zeroes in the appropriate places. Even if a corporation has no activity, you must file a tax return with IRS telling them that fact. If you don't, IRS could very easily come back years later and accuse you of failing to report huge amounts of income.

As a shareholder of an S corp, you should not be using 1040EZ for your personal taxes. You need to use the regular 1040 and attach Page 2 of Schedule E to show your S corp and its pass-through income for this year. Even if it's zero, you should show it on your 1040.

I hope this helps.

Good luck.

Kerry Kerstetter

- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 3/05/2004 07:38:00 PM Send this post: