1120 never filed return (since 2000)

[h0250722]

I have a potential new client. Foreign owned 1120 (has a vacation home that is never rented - no income for the Corp all those years) - founded in 2000.

Never filed a tax return. 

I know 5472 will trigger 25,000 penalties. But how do I even start. I don't have Proseries from 25 years ago. CORP never had any income. Only asset is a vacation home in Florida. 

Is there any disclosure program available for him? 

[BobKamman]

Most states require corporations to file annual reports, or lose their status.  Are you sure it wasn't dissolved in 2001?  

[BobKamman]

"Foreigners buying Florida homes" is another way of saying "nothing to see here, just ignore those stories about money laundering."  Are they Russian oligarchs, or Latin American drug dealers?  We'll never know, but maybe law enforcement will find out with the help of BOI reporting.  

I looked up how Florida corporations are administratively dissolved.  Apparently if you don't file an annual report, with the annual fee, you get an email telling you adios, до свидания.  You can look up corporate status online.  The problem these "we aren't in business, we just pretend to hide ownership" people have is that when they want to sell the place (and that may be why they are getting around to asking for help) the buyer is going to want clear title.  

[Taxes-by-Rocky]

SMLLC's weren't exactly prevalent back then.

Have the client retain legal counsel first.  Then, the client can tell you what needs to be done after they have spoken with an attorney.

[h0250722]

Annual report was filed every year. The corporation initially also got an EIN but never filed 1120.

[h0250722]

Owners are Austrian, an the property costs about 100,000 and the building another 150,000 - so I doubt money laundering was involved. Annual report was filed every year. The corporation initially also got an EIN but never filed 1120

[sjrcpa]

"no income for the Corp all those years"

Was a return required to be filed? I don't know if the foreign ownership supersedes  the no income or deduction rule for filing. Just throwing it out there.

[BobKamman]

Money laundering involves paying $250,000 for a property worth $100,000.  How do you know they are Austrian -- have you seen their passports?  Would you recognize a forged one anyway?  Have they explained why a corporation was needed in the first place?  

[h0250722]

Yes I saw their passports, I am a CAA. The property (Lot) was purchased for 100,000. The building they put in a couple years later was 150,000. Total investment was 250,000 Dollar.