Do I need to file a Form 1120 if the business has no income?

If you had no income, you must file the corporation income tax return, regardless of whether you had expenses or not. The bottom line is: No income, no expenses = Filing Form 1120 / 1120-S is necessary. No income, but expenses = Filing Form 1120 / 1120-S is necessary.

What is the penalty for not filing corporate tax return?

The penalty for failure to file a federal S corporation tax return on Form 1120S — or failure to provide complete information on the return — is $195 per shareholder per month. The penalty can be assessed for a maximum of 12 months.

What is the threshold for filing Form 8938?

Unmarried individuals residing in the United States are required to file Form 8938 if the market value of their foreign financial assets is greater than $50,000 on the last day of the year or greater than $75,000 at any time during the year.

How are C corps taxed?

Double taxation A corporation is a separate tax-paying entity unless it makes an election to be taxed as an S corporation. This means a C corporation pays corporate income tax on its income, after offsetting income with losses, deductions, and credits.

Is Form 1120 for C corporations?

Form 1120 is the tax form C corporations (and LLCs filing as corporations) use to file their income taxes. Once you’ve completed Form 1120, you should have an idea of how much your corporation needs to pay in taxes.

What is the penalty for filing a C Corp late?

For C Corps, the IRS late filing penalty is equal to five percent of the unpaid tax amount for each month or portion of a month the taxes remain unpaid, up to a maximum of 25\% of the unpaid tax.

What happens if a corporation does not file a tax return when it owes no taxes?

No IRS Penalties The IRS has the authority to charge corporations that don’t file tax returns a late-filing penalty. This penalty is calculated as a percentage of the amount of unpaid tax that should have been reported on Form 1120.

What is the purpose of Form 8938?

Use Form 8938 to report your specified foreign financial assets if the total value of all the specified foreign financial assets in which you have an interest is more than the appropriate reporting threshold.

What happens if you forget to file Form 8938?

If you do not file a correct and complete Form 8938 within 90 days after the IRS mails you a notice of the failure to file, you may be subject to an additional penalty of $10,000 for each 30-day period (or part of a period) during which you continue to fail to file Form 8938 after the 90-day period has expired.

Are C-corps taxed twice?

Double taxation occurs when a C-corp generates a profit for the year AND distributes that profit to shareholders in the form of a dividend. It’s called double taxation because the profits are taxed first at the corporate level and again by the recipient of dividends at the individual level.

What is the C Corp tax rate for 2020?

21\%
Historical U.S. Federal Corporate Income Tax Rates & Brackets, 1909-2020. For tax years beginning after 2017, the Tax Cuts and Jobs Act (P.L. 115-97) replaced the graduated corporate tax structure with a flat 21\% corporate tax rate.