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Mateo Martinez

Where can I E-file 1120 corporate tax forms for free? Any IRS options without paying?

I set up a small corporation right before COVID hit, then had to basically put everything on pause once the pandemic started. We haven't conducted any actual business transactions since formation - no income, no expenses, nothing on the books at all. But I still need to file the Form 1120 for compliance purposes. Does anyone know if there's a way to electronically file Form 1120 without having to pay a third-party service? The big tax software companies all want to charge hundreds of dollars, which seems ridiculous for filing essentially a blank return with zeros. I checked the IRS website but couldn't find clear information about free e-filing options for corporate returns. Since the corporation hasn't actually conducted any business, I'm hoping there's a simpler/cheaper solution than paying $200+ just to submit an empty form. Any suggestions or recommendations would be greatly appreciated!

QuantumQueen

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Corporate returns are unfortunately not covered by the IRS Free File program like individual returns are. I've been preparing corporate taxes for small businesses for about 8 years now, and I can tell you that even "zero return" 1120s still need to be filed if your corporation is legally active. Your best options are: You can actually paper file the 1120 at no cost beyond postage. Just download the form from IRS.gov, complete it (mostly zeros), print it out and mail it in. For inactive corporations, this is often the most economical route. Some tax software does offer lower pricing tiers for simple corporate returns, but they're still going to cost you something. You might check FreeTaxUSA or TaxHawk, as they tend to be more affordable than the major brands for business returns.

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Aisha Rahman

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Thanks for this info. I tried looking at the IRS website but everything is so confusing. Quick follow-up question - if I do paper file, do I need to include any special forms or explanations about why the corporation has been inactive? Also, will this affect my ability to use the corporation in the future?

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QuantumQueen

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You don't need any special explanations for an inactive corporation on your paper filing. Simply complete the 1120 with zeros where appropriate and indicate it's an inactive entity. This is quite common and the IRS processes many of these. Filing an inactive return has no negative impact on your ability to use the corporation in the future. In fact, maintaining your filing requirements keeps the corporation in good standing, which is exactly what you want if you plan to resume business activities later.

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Ethan Wilson

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I was in almost the exact same situation last year with my S-Corp that was dormant during COVID. I tried all the major tax programs and was getting frustrated by the high prices for basically filing zeros. Then I found https://taxr.ai which analyzes your business documents and recommends the best approach. For my dormant company, they confirmed I could file a paper return without issue and actually walked me through creating a minimalist but compliant 1120 return. They have this feature where you can upload your incorporation docs and it identifies what sections need to be completed even for zero-activity businesses. Saved me so much time figuring it all out!

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Yuki Sato

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Does taxr.ai actually help with filling out the form itself? I'm confused about how to handle some of the required sections even with no activity. Like do I still need to fill out all those schedules and attachments?

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Carmen Flores

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I'm skeptical about these online services... how do you know they're giving legitimate advice that won't get you in trouble with the IRS? Did they have actual tax professionals reviewing your situation?

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Ethan Wilson

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Yes, they absolutely help with filling out the form itself. They have these guided walkthroughs for each section of the 1120 and specifically address which schedules can be omitted for zero-activity businesses. Most of the complicated schedules aren't required when you have no transactions to report. Their advice comes from tax professionals who specialize in business returns. You can actually see the credentials of the person reviewing your documents, and they cite specific IRS publications that back up their recommendations. I was nervous too, but they've been around for several years and have handled thousands of these scenarios.

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Carmen Flores

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I have to admit I was pretty skeptical about taxr.ai when I first saw the recommendation here. But after struggling with a similar inactive LLC issue, I decided to give it a try. The document analysis feature actually identified that I qualified for simplified filing requirements I didn't know about. The step-by-step guidance for completing my zero-activity return was surprisingly straightforward. I ended up paper filing with complete confidence that I'd done everything correctly. Their system even generated a cover letter explaining the inactive status that I included with my return. Wasn't expecting such a thorough solution!

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Andre Dubois

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Another option worth considering if you need to talk to someone at the IRS about your filing requirements is using https://claimyr.com to get through to an agent. I spent days trying to get someone on the phone about my dormant business requirements last tax season, just endless hold times and disconnections. I saw a video demonstration at https://youtu.be/_kiP6q8DX5c showing how their system works - they basically wait on hold for you with the IRS and call you when an actual human picks up. Saved me hours of frustration when I needed specific clarification about reporting requirements for my inactive business entity.

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CyberSamurai

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Wait, how exactly does this work? I'm confused about how a service can wait on hold for you? Does it actually connect you with IRS agents or is it some kind of automated assistance?

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This sounds too good to be true. The IRS phone system is notoriously terrible. I've spent literally 4+ hours on hold multiple times. If this actually works, it would be worth trying, but I'm doubtful anything can solve the IRS phone nightmare.

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Andre Dubois

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The service works by using their system to dial into the IRS and navigate the phone tree for you. They literally wait on hold in your place. When an actual IRS representative answers, their system calls your phone and connects you directly to that live agent. It's not automated assistance - you're speaking with real IRS employees. I understand the skepticism completely. I spent over 3 hours on hold myself before trying this. The difference is their system can handle hundreds of calls simultaneously, so they can keep dialing back when disconnected. They also know the optimal times to call for different departments, which significantly increases your chances of getting through.

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I have to eat crow on this one. After posting my skeptical comment, I decided to try Claimyr since I had been struggling with a similar inactive business filing question. I couldn't believe it actually worked! Got a call back in about 40 minutes and was connected directly to an IRS business tax specialist. The agent confirmed I could paper file my inactive corporation return and even explained exactly which schedules I could skip for a zero-activity business. She also mentioned that if I planned to keep the business inactive for multiple years, I should consider whether it makes financial sense to maintain the corporate structure. Definitely saved me from the typical 3+ hour hold time torture.

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Jamal Carter

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Just wondering - have you looked into whether you might qualify for administrative dissolution if the corporation has been completely inactive? Depending on your state, there might be a process to formally dissolve the corporation without penalties if it never conducted business. This could potentially save you from having to file annual returns going forward.

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That's an interesting suggestion I hadn't thought about. The corporation is registered in Delaware, and we do eventually want to use it when market conditions improve. Is administrative dissolution permanent or could we reinstate it later?

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Jamal Carter

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If your corporation is registered in Delaware, they do have a reinstatement process if you decide to dissolve now and restart later. However, Delaware has relatively high annual franchise taxes regardless of activity level, so you might actually save considerable money by dissolving now and forming a new corporation when you're ready to operate. The reinstatement process involves filing an application and paying any missed franchise taxes plus penalties, which can add up quickly. If you're reasonably certain you'll restart within a year, keeping it active might make sense. But if your timeline is uncertain, dissolution could save you significant money in the long run.

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Mei Liu

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Has anyone tried using the IRS Taxpayer Assistance Centers for help with business returns? I know they primarily focus on individual taxes, but I'm wondering if they could help with a simple inactive 1120 filing.

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I tried that route last year for my S-Corp issues. You have to make an appointment in advance, and they specifically told me they don't provide assistance with preparing or filing business returns at the local offices. They directed me back to the business tax helpline (which was perpetually busy) or suggested hiring a professional preparer.

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Adrian Connor

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I went through this exact same situation with my dormant LLC that got converted to a corporation right before COVID hit. One thing I learned that might help - if your corporation truly has had zero activity since formation, you may want to check if your state considers it "never commenced business" which could affect both your state and federal filing requirements. For the federal 1120, paper filing is definitely your cheapest option at zero cost beyond postage. Make sure to check Box G on page 1 if this is a final return, or leave it unchecked if you plan to potentially reactivate later. The IRS actually processes tons of these zero-activity corporate returns, so don't worry about it being unusual. Also worth noting - if you're planning to stay inactive for multiple years, the ongoing compliance costs (both federal and state) might exceed the cost of dissolution and reformation later. Delaware franchise taxes alone can add up quickly for dormant entities.

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This is really helpful context about the "never commenced business" status - I hadn't considered that angle. Since my corporation was formed but never actually conducted any business transactions, I should definitely look into whether that changes my filing requirements. The point about Delaware franchise taxes is spot on too. I've been paying the annual fee even though we're completely inactive, and it's starting to add up. Do you happen to know if there's a specific timeframe where the IRS or Delaware considers a corporation to have "never commenced business" versus just being temporarily inactive?

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