united-states tax-law florida federal-tax-law corporate-tax-laws
Is a Florida corporation that shows no profit or losses required to file taxes?
<p>A company is incorporated in the state of Florida; it was formed by a wantrepreneur. This company has no employees, no location, no profits, and no losses; the only proof this company exists is on paper. </p>

<p>Is this company required to file taxes for the previous year, and if they don't, will they face any punishment?    </p>

<blockquote>
  <p>Is this company required to file taxes for the previous year, and if
  they don't, will they face any punishment?</p>
</blockquote>

<p>Yes. Every corporation is required to file an <a href="https://www.irs.gov/forms-pubs/about-form-1120" rel="nofollow noreferrer">IRS Form 1120</a> every year (the same rule does not apply to trusts or limited liability companies), even if it has no revenue or expenses. <em>See</em> <a href="https://www.law.cornell.edu/uscode/text/26/6012" rel="nofollow noreferrer">26 USC § 6012(a)(2)</a> and <a href="https://www.law.cornell.edu/cfr/text/26/1.6012-2" rel="nofollow noreferrer">Treas. Reg. § 1.6012-2</a> ("Except as provided in paragraphs (e) and (g)(1) of this section with respect to charitable and other organizations having unrelated business income and to certain foreign corporations, respectively, <strong>every corporation</strong>, as defined in <a href="https://www.law.cornell.edu/uscode/text/26/7701" rel="nofollow noreferrer">section 7701(a)(3)</a>, subject to taxation under subtitle A of the Code <strong>shall make a return of income regardless of whether it has taxable income or regardless of the amount of its gross income.</strong>").</p>

<p>The penalty, assuming that no tax is actually due as per the question, is a modest fail to file a return fine that was $210 in 2018. <a href="https://www.law.cornell.edu/uscode/text/26/6651" rel="nofollow noreferrer">26 USC § 6651(a) and (i);</a> <a href="https://www.irs.gov/irb/2018-10_IRB#RP-2018-18" rel="nofollow noreferrer">Rev. Proc. 2018-18</a>. The fine will be $215 in 2019 ($205 for an S-corporation). <a href="https://www.irs.gov/pub/irs-drop/rp-18-57.pdf" rel="nofollow noreferrer">Rev. Proc. 2018-57</a>.</p>

<p>A state income tax must be filed by a Florida corporation <a href="https://www.stateofflorida.com/taxes.aspx" rel="nofollow noreferrer">only if it has income in the state</a> in a given year. So, while there is a federal requirement and penalty, there is not a state one.</p>
