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11947: Inactive Returns


1120 Corporation

What is an inactive return?

 

An inactive return shows no activity during the year. Other than zeros required by the program, there should be no dollar amounts on any screen (except, in some cases, the Schedule L balance sheet). Other information required by the IRS should also be present.

To prepare an inactive return, do the following:

1120 Return:

  1. Complete the following screen 1 information:
    1. Employer ID number
    2. Address, City, State, and ZIP
    3. Date incorporated
    4. Any applicable check boxes for item E
    5. Fiscal year dates, if not following a calendar year
  2. Complete the following K screen information and questions:
    1. Accounting method
    2. Business activity code number
    3. Business activity
    4. Product or service
    5. Question 13 concerning total gross receipts and total assets. If “No,” complete Schedule L (L screen*).
  3. Select Print inactive return on the PRNT screen. “Inactive Return” will be printed on page 1,  lines 1a and 1b.
  4. Starting in Drake20, you must also enter the Total prior year income amount on the SEC screen to prevent EF Message 0209.
  5. To e-file the return, complete the PIN screen.

 

​1120S Return:

  1. Complete the following screen information:
    1. Employer ID number
    2. Address, City, State, and ZIP
    3. Date of S election
    4. Business activity code number
    5. Principal business activity
    6. Product or service
    7. Date incorporated
    8. Any applicable check boxes for item H
    9. Fiscal year dates, if not following a calendar year
    10. Accounting Method
  2. Complete question 11 concerning total gross receipts and total assets on screen B. If “No,” complete Schedule L (L screen)
  3. Complete at least one shareholder K1E screen (K1 screen in Drake19 and prior), including the following information:
    1. ID number
    2. Name
    3. Address, City, and State, ZIP
    4. Number of shares at the start of the year in item G (item F in Drake19 and prior).
  4. Select Print inactive return on the PRNT screen. “Inactive Return” will be printed on page 1,  lines 1a and 1b.
  5. Starting in Drake20, you must also enter the Total prior year income amount on the SEC screen to prevent EF Message 0209.
  6. To e-file the return, complete the PIN screen.

  ​

1065 Return:

  1. Complete the following screen information:
    1. Employer ID number
    2. Address, City, State, and ZIP
    3. Principal business activity
    4. Principal product or service
    5. Business code number
    6. Business start date
    7. Any applicable check boxes for item G
    8. Accounting method
    9. Fiscal year dates, if not following a calendar year
  2. Complete the following on screen B:
    1. Type of Entity
    2. Question 4 concerning total gross receipts and total assets. If “No,” complete Schedule L (L screen)
    3. Partnership Representative (if different from partners listed on K1 screens)
  3. Complete at least two partner K1 screens, including the following information:
    1. ID number
    2. Name
    3. Address, City, State, ZIP
    4. Item M regarding contribution of built-in gain or loss property (K1 or PRNT screen)
    5. Partner's % for item J. If 50% or more, also complete Schedule B-1 section towards the top of the K1 screen.
    6. If the partner is the Partnership Representative, check PTR REP in the Other Information section.
  4. Select Print inactive return on the PRNT screen. “Inactive Return” will be printed on page 1,  line 1.
  5. Starting in Drake20, you must also enter the Total prior year income amount on the SEC screen to prevent EF Message 0209.
  6. To e-file the return, complete the PIN screen.

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