Describe the situations in which a corporation must file a tax return.

A. A tax return must be filed each year whether it has taxable income or not, until the corporation is dissolved. If the corporation was incorporated during the year, a short-period return must be filed for the portion of the year it was in existence.

B. A tax return must be filed each year there is activity to ensure the company pays the appropriate amount of tax. If the corporation was incorporated during the year, a return is required only if activity resulting in taxable income occurred.

C. A tax return must be filed each year there is activity. If a corporation was in existence for only a portion of the year and activity did not start until the following year, there is no filing requirement.

D. A tax return must be filed each year whether it has taxable income or not, until the corporation is dissolved. If the corporation was incorporated during the year, the portion of the year is tacked onto the next year's full year return to ensure all activity is reported.