For many years, Sophie has owned and operated several apartment buildings. In 2001 and upon the advice of her attorney, Sophie transferred the apartment buildings to a newly created corporation. Her main reason for incorporating the business was to achieve the legal protection of limited liability.
Every year since 2001, Sophie has prepared and filed a Form 1120 for the corporation. No corporate income tax has been paid because, after the deduction of various expenses (including Sophie's "management fee"), the corporation reports zero taxable income.
This year, Sophie decides that filing Form 1120 is a waste of time and serves no useful purpose. Instead, she plans to report all of the financial activities of the apartment business on her own individual Form 1040.
Comment on the propriety of what Sophie plans to do.