9.9 - Procedure

Question 1

Return Due Date

What is the return due date for a C Corporation?

Answer 1

April 15th

Question 2

Return Due Date

What is the return due date for corporations with a June 30th fiscal year?

Answer 2

March 15th until the close of its tax year 2026

Question 3

Return Due Date

How long is an automatic extension?

Answer 3

5 months

Question 4

Return Due Date

Are there any exceptions to the length of time automatic extensions can be extended? If so, explain

Answer 4

Yes

• 6 months for a noncalendar year, and
• 7 months for a June 30th fiscal year C-Corporation

Question 5

Return Due Date

What must a corporation do to be granted an automatic extension?

Answer 5

• file form 7004 and
• pay estimated liability on/before initial due date

Question 6

Return Due Date

What is the automatic extension for calendar-year & June 30^th fiscal-year C corporations starting 2026?

Answer 6

6 months

Question 7

Termination of Corporation

What 2 things must take place in order for the corporation to “not exist” for federal tax purposes?

Answer 7

• No taxable income in CY and
• Ceased doing business, dissolved & retained no assets

Question 8

Termination of Corporation

What should the corporation do to finalize the termination of the corporation?

Answer 8

File a final tax retunr

Question 9

Liability Payment and Penalty:

When must tax liability be paid if an extension is granted?

Answer 9

by the due date regardless of extension

Question 10

Liability Payment and Penalty:

Describe the failure to file penalty

Answer 10

• 5% of the tax for each month or fraction of a month delinquent up to 25% max

Question 11

Liability Payment and Penalty:

Describe the failure to pay penalty

Answer 11

• ½% of the tax for each month or fraction of a month delinquent
• Reduced by failure to pay penalty if both apply

Question 12

Liability Payment and Penalty:

True or False >>> Interest is not imposed on underpayments of tax and penalties if penalties are assessed

Answer 12

False - interest is also imposed on underpayments of tax and penalties

Question 13

Closed Cases

Will closed cases be reopened to make unfavorable adjustments to the taxpayer?

Answer 13

No - but exceptions do apply

Question 14

Closed Cases

What are the exceptions to closed cases being re-opened to make unfavorable adjustments to the taxpayer?

Answer 14

• evidence of fraud
• malfeasance
• collusion
• concealment or misrepresentation of a material fact