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Posted by R. Pile on April 13, 2007, 11:48 pm
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Client was owner and president of construction company that
built residential homes. He retired in 2000 and no longer
does any construction work or has any management
responsibilities.
The company still exists on paper and every year he's been
filing Form 1120S and the equivalent State return. There
are no employees, no "office," no revenue and the only
expenses are the couple of hundred bucks he dutifully pays
every year for a local county business license. Both
returns contain only identifying information and - except
for the expense, which is carried forward to his personal
tax return as a loss - all zeros.
Is it still necessary to file this return? He says he likes
keeping the company alive, "just in case" a housing project
should come along and I think he still likes signing the
return as "president." I fill out all the paperwork every
year and, of course, charge him for the effort, but is this
really necessary?
Thanks.
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