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Hi, my name is ***** ***** I can help. I just want to clarify some things. What was the date (or approximate date) the S election was made? Are you planning on terminating the S election retroactively?
The problem with converting a S corporation to partnership is that are the assets of the corporation must be distributed out of the corp with the fair market value as their basis and any gain (but not loss) that results must be recognized by the S corp on its distribution.
To revoke a S election, the corporation must follow the procedures under IRC 1362, found here:https://www.law.cornell.edu/uscode/text/26/1362, although the S election can be terminated automatically if it ceases to qualify as a S corporation (such as making a nonresident alien a shareholder). However, if the S election terminates automatically, the LLC does not revert back to a partnership, but rather becomes a C corporation.
Under IRC 1362 a S election must be terminated by:
a revocation made during the taxable year and on or before the 15th day of the 3d month thereof shall be effective on the 1st day of such taxable year, and
a revocation made during the taxable year but after such 15th day shall be effective on the 1st day of the following taxable year.
The steps to terminate the S election can be found here: http://info.legalzoom.com/terminate-scorp-election-revert-llc-23367.html
No, nothing else needs to be done, but a final S corporation return needs to be filed. You should read IRS Publication 3402, Taxation of Limited Liability Companies, page 4, first column, found here https://www.irs.gov/pub/irs-pdf/p3402.pdf regarding the effect of changing an LLC's tax classification from S corporation to partnership.