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S Corp no activity and tax return not filed since 2018

skyworks
Level 4

Hi,

This tax payer had a single member LLC then electe S Corp in middle of 2018, but they never had any activities. My understanding is the S Corp should file tax return no matter of what.

The tax payer owned rental property,  but rental income was issued by real estate agent to this S Corp ID, but it was picked up by tax payer on the personal return.

Now we you suggested to do?

File extention for S Corp then file tax return for no activities for 2020?

Have realestate agent file corrected 1099 rent to under personal ID?

Or Dissolve the business in VA state, do nothing for filing .: ??

Penalty for late filing is $200 per member for each month late.

 

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4 Replies 4
sjrcpa
Level 15

Who is the legal owner of the rental real estate? S corp or individual?


ex-AllStar
qbteachmt
Level 15

There are good reasons to never hold real property in an S Corp.

This gets very confusing. You stated there is rental income, but you also stated there was no activity.

So, I would recommend doing nearly everything you stated.

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skyworks
Level 4

arification:

The rental property owned by the tax payer not the S Corp.

But the property management issued 1099 rent to S Corp ID.

They never filed S Corp return, but reported rental income on the personal return. 

 

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sjrcpa
Level 15

The property management co. did that based on the (mis)information they had on file.


ex-AllStar
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