Tax Law (Questions About Taxes)/C Corporation non-filing


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I had a "C" corporation and had not filed any state or federal tax returns for several years. The corporation was operating at a loss, and would have reflected that loss each year if I had filed. My accountant requested an extension each year, but we never filed, and never heard from the state or feds. Then, in April, 2013, my bank informed me that my corporation had been dissolved in Feb. 2013 (I had never been notified). I continued doing work under a different corporation. My question is if I can be held accountable for not having filed for about 10 years, and is it a crime, and should I file the returns for those years and just leave the corporation dissolved.

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Hi Bill, I would recommend filing both federal and state returns for your "C" corp as the statute of limitations remains opened indefinitely and it's a possibility that you can be assessed tax on the gross revenue of your company (without factoring in expenses). Even with the loss, there are late filing penalties on a federal level and possibly on a state level (depending on the state). Thus, I would highly recommend filing from a protective standpoint to ensure that your operating loss is recorded and remove the risk of future issues with the IRS or locally on a state level.

All the best,

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Randall Brody, EA, MBA, CCP


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