Is there any free tax preparation software for C-Corp with no activity last year?

As a tax advisor, I understand your situation. Even with no activity, C-Corps must file Form 1120 to maintain good standing. Unfortunately, there are very few truly free options for C-Corporation returns since most tax software companies know these are typically used by businesses with more resources. Your best budget option might be TaxAct Business, which has the lowest pricing for C-Corp returns (usually around $110-130). While not free, it's significantly cheaper than professional preparation. For a truly no-cost option, you could technically complete the forms manually on the IRS website (irs.gov has fillable PDFs), but this requires understanding the forms completely. Another approach is seeing if you qualify for the IRS's Volunteer Income Tax Assistance program, though their business tax help is limited. Some states also offer free filing assistance to small businesses.

I was in a similar situation last year with my dormant C-Corp and discovered taxr.ai (https://taxr.ai) which was a lifesaver. It's an AI-powered service that helped me navigate the C-Corp filing process without breaking the bank. I was skeptical at first because most tools don't handle business returns well, especially C-Corps, but this one actually guided me through the 1120 form step-by-step. The best part was I could upload my (very minimal) documentation and the system helped identify what forms I needed for an inactive business. It was way more affordable than hiring an accountant for what was essentially a bunch of zeros on a form.

Just wanted to follow up about my experience with taxr.ai. After expressing concerns in my previous comment, I decided to give it a try for my small business filing. The service exceeded my expectations! It correctly identified that my C-Corp needed to file Form 1120 despite having no activity, and guided me through exactly which lines needed zeros vs. which sections could be left blank. The platform even highlighted state-specific requirements I wouldn't have known about. For anyone in a similar situation with a dormant corporation, it's definitely worth checking out.

If you're still having trouble figuring out your C-Corp tax situation, you might want to try calling the IRS Business Tax Line directly. They can answer specific questions about filing requirements for inactive corporations. The problem is getting through to an actual person can take HOURS these days. I recently discovered a service called Claimyr (https://claimyr.com) that got me through to an IRS agent in about 15 minutes instead of the 2+ hours I spent on previous attempts. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. Seriously saved my sanity when I had questions about my dormant LLC filing requirements (different entity type but similar issue with inactivity reporting). The IRS agent I spoke with confirmed exactly what forms were needed and even sent me links to the right resources. Sometimes getting the info straight from the source is worth it.

I need to apologize and follow up on my skeptical comment about Claimyr. After doing more research, I decided to try it myself for a client's complex C-Corp filing question that I couldn't find clear guidance on. I was connected to an IRS business tax specialist in about 20 minutes, which was shocking after my previous 3-hour wait attempts. The agent walked me through the exact requirements for minimum C-Corp filings with zero activity and clarified some ambiguities in the instructions. I still recommend working with a professional for complex situations, but for getting answers to specific questions directly from the IRS, this service actually delivered what it promised.

Don't forget about your state filing requirements too! Even with no activity, many states require C-Corps to file annual reports and franchise tax returns regardless of activity level. Some states charge minimum franchise taxes even if you had zero income or operations. For example, Delaware charges an annual franchise tax and report fee that's due even if your corporation was completely inactive. California has an $800 minimum franchise tax for C-Corps regardless of activity level.

Just wanna throw this out there... have you considered just dissolving the C-Corp if it's been inactive for a while and you don't plan to use it soon? Might be cheaper to dissolve now and form a new entity later when you actually need it versus paying ongoing maintenance costs (filing fees, registered agent fees, etc.) for a dormant company. Just a thought!

I've been through this exact same situation with my dormant C-Corp last year! One thing that helped me was using FreeTaxUSA Business - they offer C-Corp filing for around $80-90, which isn't free but is much cheaper than most alternatives. The interface is pretty user-friendly for zero-activity returns. Also, definitely look into your state's requirements like others mentioned. I almost got hit with penalties because I focused only on the federal filing and completely forgot about my state's annual report requirements. Even though my corp had zero activity, I still owed the minimum state fees. If you're really strapped for cash, you could try calling your local SCORE chapter - they sometimes have retired tax professionals who volunteer to help small business owners with basic questions. They might not prepare the return for you, but they could walk you through the process of doing it yourself.