Cherry574
Level 2
01-26-2022
06:17 PM
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The client filed form 8832 late to convert llc to c-corp. Then he received a letter from the IRS that the effective date changed to May 2021 instead of 1/1/2021.
While the client use calendar tax year, should he file as a llc or c-corp for year 2021?
Thanks advance.
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mhsmith53
Level 3
01-27-2022
08:27 AM
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If the effective date is truly in May seems like they would need to file both (LLC & Corp)
Question is can the effective date be modified.
Appears there are Relief provisions when Form 8832 or Form 2553 is not timely filed.
Link below is a decent article
https://www.thetaxadviser.com/issues/2020/apr/electing-s-status-llc.html