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Partnership with zero income this year - must we file return?

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indian
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« on: November 17, 2008, 10:32:01 am »

Hey folks, i have a question. I am running a little partnership with my buddy, but we have not made anything this year, we just did not conduct our business this year. Do we still need to file a tax return even though our partnership had no income for the year?
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« on: November 17, 2008, 10:32:01 am »

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sunset
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« Reply #1 on: November 25, 2008, 01:42:36 pm »

Hey folks, i have a question. I am running a little partnership with my buddy, but we have not made anything this year, we just did not conduct our business this year. Do we still need to file a tax return even though our partnership had no income for the year?

If you had no income and you have not carried over any loss from the last year, then you would not need to file a return. However, it is a good idea to always file one. The reason is that

a) if for whatever reason something does not turn out right, and you perhaps should have had to file a tax return, IRS could penalize you not only for your potential tax liability but also for not filing return
b) if you file one year, then not file the next year, then file again, you are drawing some attention to your self which you do not want to do

It is better to file return with all zeros (or perhaps just claim than none.
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