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PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4408
Experience:  35 years tax experience, including four years at a Big 4 firm.
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I have an s corp that I want to close. I need 2014 and 2015

Customer Question

I have an s corp that I want to close. I need 2014 and 2015 filing advice.
Submitted: 1 year ago.
Category: Tax
Expert:  PDtax replied 1 year ago.

Hi from just answer. I'm PDtax, and can assist.

Customer: replied 1 year ago.
i dont see any replt other than you saying you can assist. how do we do this discussion? I'm new to this.
Expert:  PDtax replied 1 year ago.

Start by telling me what you want me to do.

Expert:  PDtax replied 1 year ago.

Once I know what you need, I will give you a price.

Customer: replied 1 year ago.
okay. I started an s corp company in 2013. I received income but it was a prepayment for work anticipated in 2014. in January 2014 they terminated the contract but agreed I should keep the money paid. I didn't do any work in 2014 so didn't pay myself income or take a draw. so how do I deal with the money in 2014? just keep in on the books for the company?
then I plan to close the company now as I'm going back to work for another company. what do I do with the money in the corp account? can I just do a draw since I never did work?
Customer: replied 1 year ago.
what state are you licensed in?
Expert:  PDtax replied 1 year ago.

Licensed in NY.

Customer: replied 1 year ago.
I am in Colorado. will that affect your advice?
Expert:  PDtax replied 1 year ago.

No. I know how to address your questions.

I can do this for the amount posted.

Expert:  PDtax replied 1 year ago.

When you received a prepayment for income for services I assume you were to render, that is typically not income in 2013. It is a refundable deposit.

When the deposit was forfeited in 2014, it is income for 2014. File a 1120S and report the income on that return, and it also passes through for you to report on your 1040.

Expert:  PDtax replied 1 year ago.

Since you are 100% owner of the S corp, all the corporate assets are yours, including the cash. You will pay tax on the income for 2014, so there will be no additional tax when you withdraw any of the funds.

Expert:  PDtax replied 1 year ago.

To close the corporation, you'll need to complete articles of dissolution. http://www.sos.state.co.us/pubs/business/helpFiles/DISS_LLC_HELP.html is the link to the CO instructions.

Expert:  PDtax replied 1 year ago.

Send it to the CO Secretary of State, and they will provide a checklist for the steps you need to take to dissolve. I suggest you file a final 1120S and CO return, but CO will not hold up the dissolution pending releases of tax bills.

Expert:  PDtax replied 1 year ago.

Thanks for asking at Just Answer. Positive feedback is appreciated. I'm PDtax.

Expert:  PDtax replied 1 year ago.

Hi again. PDtax here. Just following up to see if I answered your questions.

If so, please rate my assistance using the rating scale to close out your request. I'm PDtax.