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About John Stancil, CPA
Expertise
I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I teach tax and accounting at a small church-related college. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a part time tax practice for over 30 years. I am a member of the AICPA, National Association of Tax Professionals, and the Institute of Management Accountants. Visit my website at www.johnstancilcpa.com. Also visit my blog, www.thetaxdocspot.com.

Experience
I hold a doctorate in Accounting, and four professional certifications: CPA, CMA, CFM, and CIA. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I write a monthly tax column for the local newspaper. I have prepared taxes for over 30 years.

Education/Credentials
DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill College

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Tax Law (Questions About Taxes) - Filing requirement

Expert: John Stancil, CPA - 11/8/2009

Question
QUESTION: I filed an Articles of Incorporation with Secretary of State on May 2007, but I did not start my business until February 2008. Do I have to file 1120 for 2007?

ANSWER: JJ,

Thanks for your question.

A business must file return for every year it is in existence, even if there were no income or expenses. So you need to file.

Hope this helps.

John Stancil, CPA

---------- FOLLOW-UP ----------

QUESTION: Obviously, I thought I did’t have to file since there were no income and expense. Further, IRS has never inquired about my 2007 return. Should I file it now? Would that be too late? How do I explain to IRS?

Answer
Since there is no income and no expense and you have not filed a previous return, this is likely below their radar. Since there is no tax involved, you can either file a zero return, or skip filing the 2007 return and file 2008 as the initial return. Tell them the business did not commence until 2008 if they ask.

John Stancil, CPA

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