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11947: Inactive Returns


1120 Corporate

What is an inactive return?

 

An inactive return shows no activity during the year. Other than zeros required by the program, there should be no dollar amounts on any screen (except, in some cases, the Schedule L balance sheet). Other information required by the IRS should also be present.

To prepare an inactive return, do the following:

1120 Return:

  1. Complete the following screen 1 information:
    1. Employer ID number
    2. Address, City, State, and ZIP
    3. Date incorporated
    4. Any applicable check boxes for item E
    5. Fiscal year dates, if not following a calendar year
  2. Complete the following K screen information and questions:
    1. Accounting method
    2. Business activity code number
    3. Business activity
    4. Product or service
    5. Question 13 concerning total gross receipts and total assets. If “No,” complete Schedule L (L screen*).
  3. Select Print inactive return on the PRNT screen. “Inactive Return” will be printed on page 1,  lines 1a and 1b.
  4. To e-file the return, complete the PIN screen.

 

​1120S Return:

  1. Complete the following screen information:
    1. Employer ID number
    2. Address, City, State, and ZIP
    3. Date of S election
    4. Date incorporated
    5. Any applicable check boxes for item H
    6. Fiscal year dates, if not following a calendar year
    7. Accounting Method
    8. Business activity code number
    9. Principal business activity
    10. Product or service
  2. Complete question 10 concerning total gross receipts and total assets on screen B. If “No,” complete Schedule L (L screen)
  3. Complete at least one shareholder K1 screen, including the following information:
    1. ID number
    2. Name
    3. Address, City, and State, ZIP
    4. Number of shares at the start of the year (item F)
  4. Select Print inactive return on the PRNT screen. “Inactive Return” will be printed on page 1,  lines 1a and 1b.
  5. To e-file the return, complete the PIN screen.

  ​

1065 Return:

  1. Complete the following screen information:
    1. Employer ID number
    2. Address, City, State, and ZIP
    3. Business start date
    4. Any applicable check boxes for item G
    5. Fiscal year dates, if not following a calendar year
    6. Accounting method
    7. Business code number
    8. Business activity
    9. Product or service
  2. Complete the following on screen B:
    1. Type of Entity
    2. Question 6 concerning total gross receipts and total assets. If “No,” complete Schedule L (L screen)
    3. Tax Matters Partner (if different from first listed partner on the K1 screens)
  3. Complete at least two partner K1 screens, including the following information:
    1. ID number
    2. Name
    3. Address, City, State, ZIP
    4. Item M regarding contribution of built-in gain or loss property (K1 or PRNT screen)
  4. Select Print inactive return on the PRNT screen. “Inactive Return” will be printed on page 1,  line 1.
  5. To e-file the return, complete the PIN screen.

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