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It sounds like you are aware of the general rule that limits your return amendment to three years from the due date of the original filed return.
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These were business losses in a sub-S corp. I contributed money to the business while it was a sub-S in 2007, 2008 and early 2009 - most in the earlier years. We converted the sub-S to a C Corp in July 2009, and filed half the year as an S Corp and half as a C Corp. I used a new CPA who did not understand the info from the old CPA. Plus old CPA had not properly recorded my investments in the business in the prior years. New CPA concluded I had no basis left in the S Corp when, in fact, I did.
If I file an amended 2009 now, showing the cumulated losses that were overlooked, how might the IRS treat that? They're accurate losses, but do I violate any laws since the prior years are out of statue and I am unable to amend returns prior to 2009 because of statute?
Thank you. This is helpful. The contribution shows on the balance sheet as a loan to me and is still on the balance sheet today. Conversion to S is not an option as the company itself has closed its doors and will either bankrupt or just dissolve with a possible Federal tax liability tied to treating debt write-off as income.
So, if company is effectively defunct and I have a loan to it on the company's books, are you thinking I could write that loan off as an ordinary loss? (Business was started by me and then brought in investors in mid-2009, forcing conversion to a C)