Gonna need help with my first NC S corp return (NEXT WEEK)

[Abby Normal]

If anyone on here is knowledgeable about them, I'd appreciate any and all pointers.

Thanks in advance!

[TaxCPANY]

2013 was the latest I've filed, Abby, but I'll dust off my brain -- and recharge it -- by Monday.  Hope I can contribute some fraction of the enormous help you've lent this board.

[Terry D EA]

I have file many NC S-Corp returns. Not that much to worry about but if you have any specific questions, you can PM me or post here. I probably won't be on this board until after next week.

[JohnH]

I prepare a few NC Corp returns.  It pretty much tracks the Fed return.  Franchise tax is fairly easy to calculate (minimum is $200).  You can also attach the Sec of State Annual Report to the return if you wish, or omit it from the return and simply file it directly on the NC Sec of State web site.

The main problem is that NC doesn't recognize bonus depreciation so you have to do some year-over-year adjustments if you have any on the Fed return.  If you have out-of-state shareholders, there's a special form you have to prepare.  Is all the income from NC, or will you need to allocate among more than one state?  I'll help in any way I can - just post here, PM me, or email me.  

 

EDIT-Glad to see that Terry chimed in while I was typing - probably prepares lots more of them than I do.  

[Abby Normal]

Thanks, all! I haven't gotten into yet (first day back and all).

Does NC recognize federal S status or do S corps pay taxes in NC?

I saw the franchise tax and we extended but did not pay the $200.

The S corp lost money in the short-year since it was formed, so the franchise tax should be all they owe?

[JohnH]

Yes, NC recognizes S-corps.  No income tax is due.  You'll file the CD-401S (the CD-405 is for C-corps).  Not paying the $200 Franchise Tax is not a big deal - you'll probably owe a $20 FTP penalty and some interest at abnout 1/5 of 1% per month. They might invalidate the extension and charge another 5% per month FTF penalty, but I'm not sure about that.  But all in all, I'd guess the entire P&I is no more than $40 at present.   Incidentally, the franchise tax is not pro-rated for short-year returns.

If you don't have any bonus depreciation to deal with, the return is fairly simple.  Remember there's the NC-NA to file if any shareholders are non-residents.  Finally, don't forget to file the Annual Report. It can be attached to the corp return or it can be filed directly at the NC Sec of State web site.  Fee is $25 (or maybe $20 if filed on the web site).

[Abby Normal]

Great! Thank you sooooo much JohnH! I hadn't even thought about the annual report.

Wait a minute. Is the $200 franchise tax in addition to the $200 annual report fee, or are they one and the same?

[Abby Normal]

Never mind, it's the LLC annual fee that's $200.