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I have a small business that I do part time, but last year I didnt do any transaction/project. Do I need to file for tax return?

Albany, NY |

I have a small business that I do part time, but last year I didnt do any transaction/project. Do I need to file for tax return under my busiess name? I used to do Turbo Tax Home & Business but not sure if I should just do my W2's this year.

Attorney Answers 3


  1. Yes. You should file a tax return to start the Statute of Limitations.

    Ron Cappuccio
    www.taxesq.com

    If you do not like this answer or disagree, please look at one of the other answers provided. It is not necessary for you to try prove this answer is "wrong" or something with which you do not agree. This is a free service for you based on limited facts. Nevertheless, many times you need to consult an attorney with the details to get actual advice specific to your concerns. Do not put too many details in your questions or comments because this makes the information public and could hurt you. Government Regulations contained in IRS Circular 230 regulate written communications about Federal tax matters, including e-mail, between us and our clients. This is another attempt by the government to limit your rights and to extend the control of government over individuals and businesses. Nevertheless, such communications are either opinions or other written communications. This is not an opinion. It is other written communication and was not written to be relied upon, by itself, to avoid any tax penalties. In order to receive assurances of protection from tax penalties from a written communication, you should get an opinion letter. If you would like to discuss an opinion letter relating to any matter, please contact me and I will explain what is involved and what it will cost.


  2. Is this small business incorporated and did it previously files a corporate return. Or was this small business reported on Schedule C of your income tax return. If the latter, than file your normal 1040 with the W-2 income. If it’s incorporated you most likely need to file the corporate return until you dissolve the entity.

    The above statements are provided as general information and not intended as legal advice. Each matter has its own set of unique circumstances that cannot be adequately addressed without consultation. You are strongly advised to hire an attorney licensed to practice law in your state to represent you.


  3. I totally agree with Scott's answer. If you filed that business on a Schedule C of F, then you have no income needing that schedule, so just file with your W-2's. But if it is an incorporated business that filed a 1120 or 1120-S previously, then you need to file even though you had no income in it.