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Failed E-file Extensions (change in entity classification- disregarded entity LLC to S corp)

JJKIMCPA925
Level 2

Hello,

I have a few clients who submitted forms 2553 and 8832 to change their entity classification from single member LLC/disregarded entity to S corp for tax year 2021. They did not receive any form of acknowledgment from the IRS regarding the change. Since S corp returns are due 3/15, I tried to apply for an 1120s extension using the same EIN, but it was rejected with the following message:

"In Form 7004, Line 1, 'ExtensionReturnCd' the return for which the extension is filed must match the return type established with the IRS for the EIN."

I was on the phone with the IRS for a while, but no luck. I am thinking I will apply for an extension on the client's personal return (1040) and mail file an 1120s with another copy of form 2553 (assuming they will accept the change). I am just worried that they will consider the 1120s as being filed late since I am currently unable to file an extension. Or should I try to mail file the 1120s extension as well? I really wish it was easier to check the entity classification without having to calling the IRS. Any help would be greatly appreciated!

Thank you!

0 Cheers
1 Comment 1
George4Tacks
Level 15

Did you call this phone number?

https://www.irs.gov/businesses/telephone-assistance-contacts-for-business-customers

I would do paper extension if all else fails. Priority mail with tracking? I hate to wish that someone is there to sign for registered. 

 


Here's wishing you many Happy Returns