Must I do the Balance Sheet, Etc on a Corporate Return?
Must I do the Balance Sheet, Etc on a Corporate Return?
I am doing a corporate return on TurboTax and it is telling me I have the option of filing a balance sheet and some additional forms, but I am not required to. This is my first time doing corporate tax returns and up until now, my accountant has always done the balance sheet and those other forms. My question is should I go ahead and do these additional forms if the following is the case:
- Corporation was dissolved on last day of its fiscal 2007 year making this its last return(other than a possible amended).
- Corporation expects to show loss with legitimate deductions.
As a second part to the question, I currently am only doing the Federal Corporate Return. Am I required to complete the balance sheet, etc. for a state of California Corporate Return anyway?
thanks for your help and input
Answers:
Ken B: Schedule L is normally required to be completed. However, if this is truly your final tax year (see my other response to your other question on exiting states on final tax year) then you should be able to simply put in the beginning balance sheet figures from your ending balance sheet figures off of your 2006 return. All of your 2007 ending balance sheet figures are effectively $0 if you have truly ceased doing business. Now I know why Turbo Tax wasn't allowing you to absorb any of your carryover NOL's, you didn't have any taxable income to offset in the current year! As mentioned in my other answer to you on your other question, California requires a series of steps to be completed to properly exit the state for business purposes. Otherwise, they will continue to tag you for minimum franchise tax fees, require you to keep filing tax returns, penalize you for not filing, etc. Below is a link of what the State requires of you to do.
2008-04-10 05:58:52