Ask Experts Questions for FREE Help !
Ask
    prancingfeet's Avatar
    prancingfeet Posts: 5, Reputation: 1
    New Member
    		  
    #1

    Jun 26, 2008, 12:54 PM
    Forms 1120 and 1120S
    Hi all - I need help with a question... I have gotten a letter from IRS stating that my corp. which I thought was a sub corp S is not and that I have not filed form 2553 for this permission. I can redo taxes on form 1120 instead of 1120S. How does this affect my personal taxes - can I file the 2553 retroactive?
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #2

    Jun 27, 2008, 02:48 AM
    If your corporation had first year in 2007, then Form 2553 -- election for S-corporation must be filed within two months of the beginning of the tax year. This also means that you can not even elect for S-corp for 2008. If you file now, you will be treated S-corporation from 2009.
    Also instructions to Form 2553 says that if you had some reason for not filing the form as required, then you can file it with Form 1120S and attach statement. So check with IRS if you can still file Form 2553 for 2007 election (if you have some good reason) as attachment to already filed Form 1120S.

    If you are a C corporation and you filed your individual tax return based on K form from S-corporation, then you will need to amend your tax return. File Form 1040X.
    prancingfeet's Avatar
    prancingfeet Posts: 5, Reputation: 1
    New Member
    		  
    #3

    Jun 27, 2008, 06:02 AM
    No my corp began in 98. Having been in the red from the beginning, I was told I did not need to file a tax return. My cpa (who is out of town until mid july) had me do the past 6 years. I have closed my corp for 08. Will the 04, 05, 06 taxes need the 2553 to be able to be an S corp?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Jun 27, 2008, 12:09 PM
    These are complex tax issues that should be handled by a competent tax professional.

    If you have a CPA, USE HIM! You are paying him for his services.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Difference between IRS Forms 1120S AND 1120 [ 8 Answers ]

I have received a letter from the IRS stating that I have filed an 1120S form with out submitting and receiving an OK from the IRS on form 2553. If I do not respond they will submit my tax returns as an 1120. What is the difference, and how will it affect the taxes?

Filing 1120 and Ca 100 [ 2 Answers ]

I incorporated in late NOV 2007. The Ca. Fee/Tax is $800 to be incorporated, with the first year waived, I believe. Must 2007 be my first year if there was no business done? And must I file for 2007, or can I start with the 2008 year. My articles of incorp. State operation from the first...

Equity account and 1120 s [ 1 Answers ]

If I get a personal credit for $ 20,000 in order to buy a grocery store how I register in my S-Corporation those funds and how show the repayments make to the bank. How the equity account should reflect that transaction. I have to deposit the money in the corporate bank first? How will be the...

W2 forms [ 1 Answers ]

In California how long does an employer have to issue your W2 form to you?

View more questions Search