Could my Client who was filing S-corp 1120 for his corporation this 2021 he want to be elect as a C-Corporation what should we do to be elect as a C-Corp 1120 if so which form should i use to be elected as a C-Corporation

Forum|Forum|4 years ago
March 2, 2022
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Level 9

Did the corporation at one point properly elect to be an S Corp? In other words, in the past, did the corp properly file 1120S?

An S corp's may elect to revoke its S Status. Formal filing of the revocation is required. See https://www.irs.gov/forms-pubs/revoking-a-subchapter-s-election

The S corp status is automatically terminated if something, which would prohibit the corporation from making the election to begin with, has occurred. E.g. a second class of stock; number of shareholders over the limit, a corporation owns a share of the S corp.. any relative of E.T., Superman (from Krypton) or Dick Solomon (from the unknown planet on the Cepheus-Draco border) bought some shares without living on earth for 183 days.... etc.

Creating a situation that bars the corp to be an S corp would be the way to go without filing the revocation. There are filing due date considerations (based on the effective date of the revocation) and other consequences.

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R

RDRNOTARYAuthor

Level 2

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