Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

I set up a part-time, side consulting business. It was set…

Customer Question
Hi, I set up a...
Hi, I set up a part-time, side consulting business. It was set up as an S-CORP with me as the sole shareholder, which I quickly realized was a bad option for me. I filed paperwork a few months later (in the same tax year, 2017) to change it to a single member LLC, and sent the IRS what I thought was the appropriate paperwork (notarized shareholder's consent, meeting minutes, etc.) I just got a letter back from the IRS stating that they couldn't accept my scorp termination because I didn't include a cause of the termination and the date of the terminating event. I am very confused-what should I list as the cause?
Submitted: 29 days ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 17 minutes by:
5/25/2018
Tax Professional: Barbara, Enrolled Agent replied 29 days ago
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 6,180
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
Verified

Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

Your cause of the termination of S corporation status is "erroneously elected S corporation entity status," and the date will be when you want the termination to be effective.

Please let me know if I can assist you further.

Thank you and best regards,

Barb

Ask Your Own Tax Question
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 Barbara Your Own Question
Barbara
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 6,180
6,180 Satisfied Customers
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.

Barbara 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
Whats the percentage paid in taxes for an LLC single owner?
Whats the percentage paid in taxes for an LLC single owner? Can you give me a break down from 15k, 25k, 50k, 75k?… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,392 satisfied customers
S Corp reimbursement to shareholder for vehicle question. S
S Corp reimbursement to shareholder for vehicle question. S Corp has been reimbursing shareholder for business use of delivery truck (actually paying costs directly). Record keeping seems to be solid.… read more
taxmanrog
taxmanrog
Master\u0027s Degree
975 satisfied customers
IRS Tax Question: LLC is formed in wife's name, but it is
IRS Tax Question: LLC is formed in wife's name, but it is the husband's business and he does the work. Right now it's single member. Should it be changed to his name? What happens if it converts to an… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
IRS tax question: taxes, can you have an LLC based on 2
IRS tax question:For Texas taxes, can you have an LLC based on 2 different businesses (NAICS codes)? If so how? Also, how do series LLCs operate with real estate in Texas and CO? Please provide exampl… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Texas Series LLC - Franchise Tax. Master LLC set up along
Texas Series LLC - Franchise Tax. Master LLC set up along with 1 sub-series that is running small business - revenue around $100K. No Franchise tax due but still have to fill out form. I understand it… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Client Business return - Shareholder Loan or Capital
Client Business return - Shareholder Loan or Capital Contribution. Scorp return. Already had a shareholder loan to the company of $40K from prior year/prior preparer when company started. No loan pape… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
If I am converting an LLC taxed as a partnership to be taxed
Quick question. If I am converting an LLC taxed as a partnership to be taxed as an s corp, would the 1065 for the year prior to the switch be considered a final even though I will be using same ein fo… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
How do you change ownership for an LLC that is taxed as an
How do you change ownership for an LLC that is taxed as an S-Corp? Do you just change the operating agreement? How does this effect the IRS taxes?… read more
Barbara
Barbara
Enrolled Agent
6,180 satisfied customers
I have a Question on LLC taxes if I'm part of 2 member LLC
Hi, I have a Question on LLC taxes if I'm part of 2 member LLC and the other member will not be taking any income for the year can I still file under the LLC? I would be taking 100% of the income if s… read more
Carter McBride
Carter McBride
LLM
1,152 satisfied customers
My husband is the sole shareholder and officer of his S
My husband is the sole shareholder and officer of his S corp. He has put $ into the company to finance its operations. It's not really a loan; it's like an investment. He doesn't really expect to get … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Can a scorp be a member of llc classified as scorp for tax
Hello, can a scorp be a member of llc classified as scorp for tax purposes? … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
A question about LLC tax return: I have a LLC that collected
A question about LLC tax return:I have a LLC that collected money from a few friends to invest in a startup company. Each person contributed $100k to invest in the startup plus $2k to cover the admini… read more
Carter McBride
Carter McBride
LLM
1,152 satisfied customers
For an S Corp, if the shareholder distribution is in excess
Hi Carter,For an S Corp, if the shareholder distribution is in excess of the shareholder's stock basis, this is treated as gain from the sale or exchange of the underlying stock; however, can you tell… read more
Carter McBride
Carter McBride
LLM
1,152 satisfied customers
If LLC taxed as S Corp (1) wholly owns another LLC (2) that
If LLC taxed as S Corp (1) wholly owns another LLC (2) that is a disregarded entity, and a 2% shareholder is on (2) payroll, should workers compensation be included in that W-2?Basically, a 2% shareho… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
2% shareholder insurance - If a 100% Shareholder is on
2% shareholder insurance - If a 100% Shareholder is on payroll and he has an insurance policy but spouse is on Medicare, is the amount of the insurance premiums of owner plus the Medicare that was wit… read more
Carter McBride
Carter McBride
LLM
1,152 satisfied customers
Changing being taxed as an LLC sole proprietor to an LLC
changing being taxed as an LLC sole proprietor to an LLC taxed as an S-corp, do they need to file Form 8832 or Form 2553 or both?If both, in what order?THANKS… read more
abci168
abci168
Principal
27 satisfied customers
Can my LLC with US and Foreign members be a shareholder in
Can my LLC with US and Foreign members be a shareholder in an S Corporation? The K-1 would go to the LLC.… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
I'm the principal shareholder in Californian LLC, with 51%
Hi,I'm the principal shareholder in Californian LLC, with 51% of shares. I have a hostile co-owner with 49% of the shares. Since forming the company in '13, we have been operating at a loss. I have be… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,296 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