Absolutely not. Even if a corporation had no taxable income, it may still need to file Form 1120 to remain compliant with IRS requirements. SDO CPA LLC A zero-income return confirms to the IRS that the corporation was inactive during the period. Failure to file — even a zero-income return — triggers the same failure-to-file penalties. The IRS applies those penalties to inactive corporations with the same force it applies to profitable ones.