Sure, I can address this specific tax issue. Here, I am assuming we are discussing a corporation formed in a particular state under state statue taxed as a tax C corporation (Treasury Regulation Section 301.7701-2(b)(1)). And, we are not discussing a LLC here which faces different rules as a reporting corporation.Specifically, reporting corporation has filing requirement under Section 6038A(a). And, non compliance carries a $25,000 penalty (subsection d)).We define a reporting corporation as a domestic corporation with 25% or greater foreign ownership. Or, as a foreign corporation with 25% or greater foreign ownership carrying on a trade or business in the US (Treasury Regulation Section 1.6038A-1(c)(1)).Since you identified your corporation as a C corporation, I am assuming you have a legal corporation formed in a particular state in the US with foreign ownership of 25% or greater.According to Treasury Regulation Section 1.6038A-2(e), a reporting corporation is not required to file Form 5742 if it has no transactions listed in paragraphs (b)(3) and (4) which has an extensive list of reportable items.So, we can say if a tax C legal corporation formed under state statue has no transactions listed in paragraph (b)(3) and (4), the tax C corporation may qualify for the exception from filing under Section 6038A.However, given the penalty for not filing, we would certainly analyze the situation for making sure no reportable transactions exist. Further, if no paragraph (b)(3) and or (4) transactions existed, I personally for my clients either file a protective return with a statement or include a statement for not filing based on primary tax law with the 1120 return.I have completed the above tax analysis based on the situation as presented in the question. If the facts change in any way possible, the tax results may change considerably. www.rst.tax