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

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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: 2 months ago.Category: Tax
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Answered in 17 minutes by:
5/25/2018
Tax Professional: Barbara, Enrolled Agent replied 2 months ago
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 6,671
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
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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

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