The purpose of filing annual returns is to maintain a company’s legal "good standing" with state or national registries, ensuring that business information—such as address, officers, and structure—is accurate, public, and compliant. It verifies that the entity is still active, helps prevent involuntary dissolution, and avoids penalties.
The annual return is an electronic form lodged with ACRA and contains important particulars of the company such as the name of the directors, secretary, its members, and the date to which the financial statements of the company are made up to.
The purpose of an annual report is to provide transparency, foster stakeholder trust, and comply with regulatory requirements. Filing an annual report ensures that a business remains compliant with state laws, avoids penalties, and retains its good standing status.
If you don't file an annual report, your business risks late fees, suspension of its right to do business, and eventually administrative dissolution (being shut down by the state), which can lead to losing your liability protection, making it hard to get financing or contracts, and having your business name taken by others. Reinstatement is often possible but involves back payments, penalties, and extra paperwork, according to NCH inc..
If you do not complete your annual return, the Registrar may remove your company from the register, which means it would cease to exist. This could have serious consequences. For example: Your business would have difficulty obtaining credit, goods or services.
If you don't file an annual report, your business risks late fees, suspension of its right to do business, and eventually administrative dissolution (being shut down by the state), which can lead to losing your liability protection, making it hard to get financing or contracts, and having your business name taken by others. Reinstatement is often possible but involves back payments, penalties, and extra paperwork, according to NCH inc..
Yes, the IRS will come after you for not filing taxes, eventually leading to penalties, interest, collections like liens or levies, and potentially criminal prosecution if you persistently refuse, as there's no statute of limitations for unfiled returns, allowing them to pursue you indefinitely. They can even file a Substitute for Return (SFR) for you, creating a tax bill, and begin a 10-year collection period.
No, you generally cannot skip a year of filing taxes if you meet the IRS filing requirements (income thresholds, self-employment earnings, etc.), as it's a legal obligation that can lead to significant penalties and interest if you owe taxes, though you might not need to file if your income is below the standard deduction and you have no other filing triggers. It's always better to file a late tax return (even if you can't pay immediately) to avoid penalties, especially if you're owed a refund, which you can lose if you file more than three years late.
Penalty for non-compliance
Failure to file CIT returns attracts a penalty of NGN 25,000 for the first month and NGN 5,000 for each subsequent month of default.
Annual reports are required filings to maintain a business entity's good standing with the secretary of state. With a few exceptions, annual reports are not complex. They generally contain basic information about a company such as its principal address, registered agent, and officers and directors.
The requirement for accounting statement submission depends on the type and size of the entity. Private limited companies, public companies, and limited liability partnerships are obligated to submit their financial statements to ACRA annually.
An Annual Return Date (ARD) of a company is the latest date to which an annual return must be made up. The annual return must be filed with the CRO within 56 days of the date to which it is made up.
Annual Reports are the primary performance reporting document, including financial statements and non-financial performance information. It contains information about the company's performance over the last 12 months.
Annual returns for corporations, cooperatives, and organizations. Keep your corporation, cooperative, or non-profit organization active and in good standing by filing your annual return.
Annual Returns with respect to registered Business Names are to be filed not later than the 30th day of June for every preceding year except the calendar year in which the business name was registered. The objective of the annual return is to ensure that the CAC has up-to-date information about the entity's affairs.
As per Section 47(2) of CGST Act, 2017, any registered person who fails to furnish Annual Return by the due date shall be liable to pay a late fee of R 100/- per day subject to maximum of 0.25% of his turnover in the State or Union Territory. Similar provision exist in respective SGST Acts, also.
You must file a federal tax return if your gross income meets certain thresholds, generally around $15,750 for single filers under 65, but this varies by filing status, age, and if you're a dependent, with lower amounts for married filing separately ($5) or self-employed individuals with $400+ net earnings. For the 2025 tax year, thresholds increase for older individuals (e.g., $17,750 for single, 65+) and higher for head of household ($23,625) or married filing jointly ($31,500), according to IRS guidance and tax prep sites.
If you don't file an annual report, your business risks late fees, suspension of its right to do business, and eventually administrative dissolution (being shut down by the state), which can lead to losing your liability protection, making it hard to get financing or contracts, and having your business name taken by others. Reinstatement is often possible but involves back payments, penalties, and extra paperwork, according to NCH inc..
There's no official limit to how many years you can go without filing taxes, but the IRS expects you to file if required, and the statute of limitations on the IRS assessing tax or collecting never starts until you actually file, meaning they can pursue unfiled returns from any year, even decades old. While the IRS often focuses on the last six years, waiting increases penalties and interest, and you risk losing any potential refunds after three years; proactively filing past-due returns is always best.
Common tax return mistakes that can cost taxpayers
The IRS 3-year rule generally refers to the statute of limitations for claiming a tax refund, which is typically 3 years from when you filed your original return or 2 years from when you paid the tax, whichever is later, for the IRS to process your claim. For an audit, the IRS generally has 3 years from the date your return was filed or due (whichever is later) to assess additional tax, though this can extend to 6 years if you significantly underreport income or omit foreign income.
One-time forgiveness, officially known as First-Time Penalty Abatement (FTA), is an IRS program that allows qualified taxpayers to have certain penalties removed from their tax accounts.
You generally don't have to file U.S. federal taxes if your income falls below the standard deduction for your filing status (e.g., single, married) and age, but you might still need to if you have self-employment income over $400, certain investment income, or received Social Security benefits that become taxable due to other income. Even if not required, filing is smart to claim refundable credits or get refunds, but some people, like certain low-income seniors or those with only non-taxable income, are typically exempt.
Notices – The IRS will start sending you notices a month or two after you miss a tax deadline. Penalties and interest – If you don't respond to notices for missed tax payments, you'll continue to accrue penalties and interest.