tax day is coming up fast and I have a question

[onethatcares]

I became an S Corp last year but due to personal financial setbacks I have not been able to do anything

but loan my business a little money. I haven't received any income/profit or paid out anything but a few

hundred in start up fees to an attorney/an accountant and a logo designer. To my question. DO I have to file

a federal income tax form stating this? I would call the accountant but that would be another fee. Thanx in advance

[county worker]

1. Start up fees are decidable the year you get income.

You seem to be still in the start up phase so I would say you don't need to report anything this year.

[patrice]

2. Wasn't the question whether s/he should file? nt

[county worker]

5. I don't know if there is any other taxable income to report.

If there is taxable income you still have to file but the S-corp doesn't need to be part of the return.

But rather than ask DU, I'd consult the IRS or some tax adviser.

[onethatcares]

3. lthat is the question, should I file? n/t

thanx

[msanthrope]

4. No actual lawyer or accountant would give you advice over the Internet.

Read Publication 542. It should answer your questions.

http://www.irs.gov/formspubs/article/0,,id=214682,00.html

[csziggy]

6. Yes, you should file - losses might be permitted to carry forward

I am not an accountant and do NOT know the current rules, but you might possibly be able to carry forward the losses against future earnings. I know in some circumstances it is possible, I am just not sure about S corporations and your exact situation or if the rules have changed since the last time I was able to do this.

Here is where to start looking for that possibility: http://www.irs.gov/businesses/small/article/0,,id=146337,00.html and http://www.irs.gov/businesses/small/article/0,,id=146340,00.html

If it is possible to carry forward your losses, that will be very nice for reducing your taxes once your business becomes profitable!

Edited for formatting.

[DCKit]

7. Agreed.... you ALWAYS need to file.

I'm sending mine in this year with zeroes across the board... again.

In your case, showing a loss this year might make next year (when you make bazillions and can afford a real tax accountant) easier.