Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

This answer was rated:

What would be the best way to handle an S Corp revocation…

What would be the best...
What would be the best way to handle an S Corp revocation that was done effective 5/31/17 but the short year tax return was not filed? Now when trying to efile the tax return, it is being rejected indicating wrong entity type and return type.
Show More
Show Less
Ask Your Own Tax Question
Answered in 58 minutes by:
3/13/2018
Carter McBride
Carter McBride, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,276
Experience: Adjunct Professor
Verified

Hey! I'm Carter, I'm a CPA and can help you with this.

All you can do is paper file the return. You can add a statement to the end of the return explaining it was a short year return and that you were unable to efile.

Let me know if you need anything else. If not, please leave a rating. Thanks!

Ask Your Own Tax Question
Customer reply replied 4 months ago
Thank you, ***** ***** have since found out that the IRS revoked the S Corp election as we requested on 5/31/17 but changed the business status to a C Corp. I’m guessing Form 8832 will need yo be filed. Any other suggestions? Ever had this happen? We are thinking of filing an extension for both C Corp & S Corp to buy some time.

I'd file the extension, it doesn't hurt anything and gives you guys time to get your ducks in a row. Yea, you'll need the 8832 if you do not want it defaulting to a C corp.

Ask Your Own Tax Question
Customer reply replied 4 months ago
Thank you. Out of curiosity, since the election was made to be effective 5/31/17 wouldn’t half the year be reported as an S Corp regardless of the second half of the year entity form? Does the IRS go retro back for S Corp revocation?

You'd have to do S Corp to 5/31/17 and C Corp going forward if it defaulted. You can request late relief on the 8832 so you don't have the C requirement in 2017.

Ask Your Own Tax Question
Customer reply replied 4 months ago
How do we request late relief for 8832, sorry.

It's the very last page of the form.

1. The entity failed to obtain its requested classification as of the date of its formation (or upon the entity's classification becoming relevant) or failed to obtain its requested change in classification solely because Form 8832 was not filed timely.

2. Either: a. The entity has not filed a federal tax or information return for the first year in which the election was intended because the due date has not passed for that year's federal tax or information return; or b. The entity has timely filed all required federal tax returns and information returns (or if not timely, within 6 months after its due date, excluding extensions) consistent with its requested classification for all of the years the entity intended the requested election to be effective and no inconsistent tax or information returns have been filed by or with respect to the entity during any of the tax years. If the eligible entity is not required to file a federal tax return or information return, each affected person who is required to file a federal tax return or information return must have timely filed all such returns (or if not timely, within 6 months after its due date, excluding extensions) consistent with the entity's requested classification for all of the years the entity intended the requested election to be effective and no inconsistent tax or information returns have been filed during any of the tax years.

3. The entity has reasonable cause for its failure to timely make the entity classification election.

4. Three years and 75 days from the requested effective date of the eligible entity's classification election have not passed

Ask Your Own Tax Question

Those are the 4 things you need to meet to get late election.

Carter McBride
Carter McBride, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,276
Experience: Adjunct Professor
Verified
Carter McBride and 87 other Tax Specialists are ready to help you
Ask your own question now
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Carter McBride Your Own Question
Carter McBride
Carter McBride
Carter McBride, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,276
1,276 Satisfied Customers
Experience: Adjunct Professor

Carter McBride is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
We are switching from an S-Corp to a C-Corp, can you tell me
We are switching from an S-Corp to a C-Corp, can you tell me what are the necessary steps to close out the books? Will I still issue K1's to the shareholders as a C corp when file taxes?… read more
abci168
abci168
Principal
27 satisfied customers
A new client of mine filed form 1120 by mistake. Is it now
A new client of mine filed form 1120 by mistake. Is it now too late to revert that to 1120S if the IRS has already accepted it?Prashant… read more
taxmanrog
taxmanrog
Master\u0027s Degree
995 satisfied customers
I have an LLC with S corp election but I revoked my S corp
I have an LLC with S corp election but I revoked my S corp election year end 2017. I am completing my 2017 1120S now. Do I mark it as a "final return" as well as "s election termination or revocation"… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,444 satisfied customers
My friend is trying to get me and my husband tax return
Hi there. My friend is trying to get me and my husband tax return efiled, but he never done it and rejected twice. Help! … read more
abci168
abci168
Principal
27 satisfied customers
I have a completely inactive S CORP i heard that I still
Hi I have a completely inactive S CORP i heard that I still have to file taxes with zeros only, my question is: can I file electronically if a s Corp returns is zero only or I have to mail it, how abo… read more
abci168
abci168
Principal
27 satisfied customers
I have an existing client who has had an S Corp for many
I have an existing client who has had an S Corp for many years. It may be an LLC that elected to be an S Corp.The client would like the S Corp to be a C Corp as of 1 Jan 17. This would have tax advant… read more
taxmanrog
taxmanrog
Master\u0027s Degree
995 satisfied customers
LLC tax status I have a client that is a North Carolina LLC
LLC tax statusI have a client that is a North Carolina LLC taxed as a S-corporation. Because of her business change, she needs to change her taxing entity back to a Sole proprietor but still needs the… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
I had a client who had been mis-advised by an earler tax
I had a client who had been mis-advised by an earler tax "pro" who failed to incorporate him when he formed an LLC mid 2016. I did a 2553 election with reasonable cause and filed his tax return in lat… read more
taxmanrog
taxmanrog
Master\u0027s Degree
995 satisfied customers
I own a startup LLC, with an S-corp selection. In Sept of
I own a startup LLC, with an S-corp selection. In Sept of 2016 we added a 3rd shareholder which is an S-corp themselves. Therefore, we can no longer file as an S-corp selection. Our taxes will need to… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I just incorporated a LLC in texas and am getting ready to
I just incorporated a LLC in texas and am getting ready to fill S cop by filing out form 2553 my question is while the form is being processed, can i claim my business tax entity as s corp to set up business checking account and other business account needs? like texas sales permit and stuff … read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
I got an S corporate e-file reject stating Error Detail: The
I got an S corporate e-file reject statingError Detail: The return type indicated in the return header much match the return type established with the IRS for this EIN.Error Resolution: This reject is… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,328 satisfied customers
If an LLC starts business, say on Jan 25 of 2015, and elects
If an LLC starts business, say on Jan 25 of 2015, and elects at that time to be an S-corporation , does one file on 1120 s an incorporation date of 25 Jan 15 and is the s election effective data 25 Ja… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I efiled my 2014 taxes, is it too late to change my LLC Partnership
I efiled my 2014 taxes, is it too late to change my LLC Partnership to a S-Corp for this year? Can I mail the form in today?… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
A client of mine sold 100% of their S-Corp 10/31/13 (stock
A client of mine sold 100% of their S-Corp 10/31/13 (stock sale). Relationship with new owner is strained and unresponsive. and we're trying to figure out best way to file period 1/1/2013 to 10/31/13 … read more
Megan C
Megan C
Certified Public Accountant (CPA)
Master's Degree
8,655 satisfied customers
Our company, treated as S-corp for tax purposes for many years,
Our company, treated as S-corp for tax purposes for many years, reverted to C-Corp (termination effective 10/8/13), and now must file 2 short year tax returns for 2013 . On 10/7/13, our balance sheet,… read more
taxmanrog
taxmanrog
Master\u0027s Degree
995 satisfied customers
Company thought they had elected to be S Corp when in fact
Company thought they had elected to be S Corp when in fact they did not. 2011 1120S was filed electronically on 9/17/12, (they had an extension), it was rejected by the IRS. The reason stated was that… read more
fastfile
fastfile
Tax Advisor
Master's Degree
550 satisfied customers
I hope that I will get a correct answer. 2009 : 1120S, 2010:
I hope that I will get a correct answer. 2009 : 1120S, 2010: 1120S, 2011: 1120 S corporation was changed to c corporation as of 01/01/2011 and I already received s corp. revocation letter beginning Ja… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
Consider an LLC filed with the state of LA. Have been filing
Consider an LLC filed with the state of LA. Have been filing as an S Corp with IRS for several years. I believe it would be best now to file as a Sole Propriertorship. What steps must I take to accomp… read more
RD
RD
Self Employed
Master's Degree
1,164 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x