Does corporation need to file business tax return?

Some corporation assumed that if there is no sales corporation is not obligated to file 1120. However, per IRS rules, regardless of corporation making a profit or loss, corporation must file annual tax return. A corporation that does not file its tax return by the due date, including extensions, may be penalized 5% of the unpaid tax for each month or part of a month the return is late, up to a maximum of 25% of the unpaid tax. The minimum penalty for a return that is more than 60 days late is the smaller of the tax due or $435. The penalty will not be imposed if the corporation can show that the failure to file on time was due to reasonable cause.

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