Final Return again or Amend?

[nabonabo]

Hello, everyone.

My client, C corporation filed a Final Return that tax period was Aug, 2024.

They got a Refund with interest from IRS. That interest is $10,000 which IRS writes a letter that it said they has to file as a Interest income on March, 2025.

Should they file another Final Return that tax period is Aug, 2025?

Or should they amend their final tax return?

If they amend, they has to pay penalty because it was over the due date.

Please help.

Thank you for your support!!

[sjrcpa]

It's March 2025 income. If they are a cash basis taxpayer it would not go on the YE Aug 2024 return.

File a return for some period ending on or after today (March 2025)

I'm curious - how'd the corporation cash the check if it didn't exist any more? Banks are funky about corporate checks.

[nabonabo]

Thank you for your reply.

We are about to return their EIN but I did stop that.

We will file a Final Return again.

Thank you very much!