FAQ Friday! Small Business, Self-Employed, Other Business Question: Must a partnership or corporation file a tax form even though it had no income for the year? Answer: Partnerships and corporations have different standards for filing an income tax return. A domestic partnership must file an income tax form unless it neither receives gross income nor pays or incurs any amount treated as a deduction or credit for federal tax purposes. A domestic corporation (including a Subchapter S corporation) must file an income tax form whether it has taxable income or not. A foreign corporation engaged in a trade or business in the United States at any time during the taxable year or with income subject to taxation under subtitle A of the Internal Revenue Code (relating to income taxes) generally must file an income tax form, even if the foreign corporation: (a) has no income effectively connected with the conduct of a trade or business in the United States, (b) has no income from sources within the United States, or (c) has income exempt from income tax by reason of an income tax convention or any section of the Internal Revenue Code.
Posted on: Fri, 14 Mar 2014 15:50:46 +0000
Trending Topics
Recently Viewed Topics
© 2015