Never Filed A Corporate Tax Return » From: Silver Spring, MD Dear TaxMama, I Incorporated a company in May 1999. Business actually started January 2001. Now I need a loan and my Bank is asking for tax returns. I never filed tax returnes for this business because there was no trading all this while. Question: (1)What satisfactory answer do I give to my Bank? (2) I'm I liable to pay/file tax for year 1999, 2000? Thanks Sam Dear Sam, Have a friendly conversation with your banker and explain to them that the business is new. As to whether you need to file tax returns for 1999 and 2000, check with MD tax collectors. Each state has different rules for corporations with no income. Maryland taxes here. However, most states require that you file, even if the numbers on the returns are zeros. Besides, is there a minimum annual corporate tax in MD? If there is, I assure you, they will want it. One thing I NEVER could understand is why someone would incorporate and then avoid taking responsibility for their business. A corporation is an entity - it exists, it has legal obligations. DON'T incorporate just because some ad on the radio or TV sounds tempting. And frankly, banks will look at that same issue when they consider your request for a corporate loan. You will already have proven to be an irresponsible and/or ignorant businessperson. So, you may face quite a challenge to convince your bank that you can handle the money they lend you well enough to pay them back. My best advice, if you can't get the loan from your bank? Do some shopping for a good local tax pro. Find one who has good contacts and relations with bank managers in the community. Sometimes, if a referral comes to a bank from one of us - because we are overseeing the client's books, taxes and business, the manager may be able to find a way to help you. Good luck! Best wishes Eva Rosenberg Your TaxMama