extension rejected irs believes the entity type of the clients does match extension

Forum|Forum|4 years ago
March 12, 2022
4 replies
14 views

the EIN is for a sole prop. i'm using to set up a 1120S and will file the 2553 with return,the extension was rejected because irs thinks it's a schedule C and I'm extended a 1120S with the EIN #

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taxiowa

Level 8

Yep. That's what happens.

dkh

Level 15

Mail the extension.

abctax55

Level 15

"... will file the 2553 "

Until that's filed, the IRS has no way of knowing that the future intent is to be an S-corp.

(We don't invite them to our mind-reading classes.)

HumanKind... Be Both

T

TaxGuyBill

Level 15

Just to clarify ... I assume you mean the EIN is for a LLC, that has previously been designated as a disregarded entity, right?

G

GrammyAuthor

Level 2

Yes that's right. So I have to file the Sch C on that EIN and disregard any payroll, (paid as a sub S employee)

T

TaxGuyBill

Level 15

@Grammy wrote:

So I have to file the Sch C on that EIN and disregard any payroll, (paid as a sub S employee)

Wait, you don't file a Schedule C if they are electing to be treated as a S-corporation (assuming they qualify for the late election). Just paper-file the extension, and because you are making the qualifying late-election with the actual tax return, that should be able to be e-filed.

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