Actually, you should file a 2007 "California 1120 S Corporation" tax return as soon as possible. Clearly, not only will you owe the minimum taxes of $800, but you will be assessed interest and late penalties on this balance. But, you should not panic as the interest would be assessed at around 7-8% at the most, resulting in around $64 but the penalties could be as high as $80.
You do not need to amend the 2007 Federal tax return, but you should prepare the CA 1120S return based on the 2007 Federal 1120S tax return. The data for the CA 1120S tax return would be retained in the software program and if you have any difficulty in assessing it you should consult the tax software program technical support department. This is not a difficult undertaking!
Since, the K-1 from CA will flow to your individual tax return, it would be necessary to file an amended CA 540 individual tax return. This is because there usually would be a K-1 difference between the Federal and CA K-1 from the 1120 S corporation tax return.
Hopefully, this should not result in a substantial additional taxes to you on your individual tax return. |