I am processing an S Corp first year tax return. I have the 12/31/22 balance sheet but no begin bal. Are beginning balances required on the initial return (1120S Sch L)?

juliarblue · ‎03-11-2023

TaxGuyBill · ‎03-11-2023

Wouldn't all the beginning numbers be zero?

Unless maybe I suppose if this was a pre-existing business that was an LLC and newly elected to be taxed as a S-corporation.

juliarblue · ‎03-12-2023

That is what I was thinking but yes it was a preexisting company that incorporated and started running the business as an S Corp on January 1. The end of the prior year the balances would be zero but on January 1 it should have a balance sheet.

George4Tacks · ‎03-12-2023

Sole proprietor became a S Corp?

https://www.irs.gov/pub/irs-drop/rr-03-51.pdf

Answers are easy. Questions are hard!

I am processing an S Corp first year tax return. I have the 12/31/22 balance sheet but no begin bal. Are beginning balances required on the initial return (1120S Sch L)?

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