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Hi from Just Answer. I'm PDtax. I'll assist.
Just confirm for me:
The original LLC filing was for a single member, and it filed Schedule C tax reporting at least once
A second member was added to company (when) and you have written proof of the purchase of his interest
You want s corp filing status.
I will assist once you get back to me with these items.
OK. Can I ask how 2014 was filed?
Also, what advantage do you get for 2015 unless you pay wages? Did you?
I'll look at the regs to see if this qualifies. I'll be back shortly.
Here's what I found.
Your situation qualifies for relief under the Rev proc, except for the 2014 filing. You might have to go back and request 2014 s status to get relief.
You still have time, it's three years and some days, so you have plenty of time.
I would file extensions for 2015 as an s if you don't decide by Tuesday. They will further show your intent to be an s, which is part of the relief Provision.
Thanks for asking at just answer. Positive feedback is appreciated. I'm PDtax.
Here's my take on your problem.
The change in ownership was in 2014. If you filed as two owners of the business, maybe splitting the schedule C reporting, that's one thing. It sounds like you just filed a 2014 schedule C 100% owned by one spouse.
That does not support the intent portion of the Relief Provision, since your 2014 filing omitted the second owner reporting.
Did either owner get payroll from the business?
Then you likely can argue that you treated the business as an s corp for 2015.
Thanks again from just answer. Please rate my assistance to close out your inquiry. I'm PDtax.
You do have to fill out 2553 for 2015.
I would send in an extension as well, treating your LLC as an S corp (since you expect approval).
Thanks again from Just Answer. Positive feedback is appreciated. I'm PDtax.