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0 pointspan694mo ago0 comments

In your post you say:

> "Hey, the federal portal says we owe $60,000 in penalties for not filing a tax return."

That doesn't sound like they're asking you to pay tax on your $0 income business. It sounds like you need to pay a fine for not filing a tax return.

What's a "normal" fine anyway? The point of having a fine being a large sum of money is to create incentive so you to do the thing they want you doing, which you didn't do.

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lukaslukas4mo ago

When we logged into the tax portal, only this amount was shown as to pay. Terrible UX.

In fact, the fine was actually what we paid (minimum tax + missed deadline + interest).

“Normal fine”: We just didn't expect you to be able to incorporate a company and if you miss the tax payment deadline, you will receive a fine 100 times higher than the cost of incorporating the company, no matter what.

But of course, I don't recommend our way. Don't do it. It was wrong. Pay your taxes. Fill out all the required documents.

phonon4mo ago

Are you sure this was the Federal tax portal, and not the Delaware Franchise tax? As far as I know, only the latter defaults to a "scary" tax calculation based on number of shares (but you can easily switch it to the Assumed Par Value Capital Method based calculation, which would be $400 in total for you, assuming you filed on time). Federal taxes should be $0 if you had no profits.

wdaher4mo ago

This is 100% about Delaware Franchise Tax and is a rite of passage for all first-time founders. (There is no portal you can log into to view your federal taxes owed.)

Here’s a detailed writeup I prepared a while back about exactly how to resolve this if you want to DIY it. (This is one of the very few filings I actually recommend you DIY.)

https://pilot.com/blog/how-to-file-your-delaware-franchise-t...

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