Hi Barb,
There are no date filters for activity that can be applied as a filter to the Physical Inventory worksheet report. The closest you can get to a zero qty filter is the item selection 'Items active at location', meaning the item is allowed at the location.
There is a checkbox option called 'Suppress Inactive items' which looks at the 'Active Item' setting on each item and if the item is not active, it will not appear on the report. So what you could do is set all the items that meet your criteria of 0 qty and inactive for a year without the Active status. If there are a lot of items like this, you can import this setting from an Excel file (created from the SmartFinder Excel import or a GridView view).
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Regards,
Softrak Tech Support