1120 S Information sheet error

[TaxHero]

I am getting error on 1120 S Information worksheet, it asks "Date Incorporated" = 6/14/2024

Then on Form 1120S it asks " S election effective date" = 9/09/2024

I get error "Effective date S election you have entered an effective date of S election that is later than the beginning date of the tax year"

I tried to change S election date to 01/01/2024, it gives me error indicating S election date is prior to "incorporated date".

It works only if I change both (incorporation date & Selection date to " 01/01/2024"

Any suggestions?

[IRonMaN · Accepted solution]

Sounds like you are doing a short year return.  Have you entered the appropriate start date on the information worksheet?

[TaxHero]

Thank you Sir

[IRonMaN]

You betcha!

[Accountant-Man]

If the election filing date is within the allowable window from the incorporation date, wouldn't the effective date also be 6/14/24, not 9//09/24?

"For a newly formed corporation, the election must be filed on or before the 15th day of the third month of the first tax year."

Example 2. Determining when the election becomes effective when a newly formed corporation elects S status: A newly formed corporation begins business on June 15, 2018, and decides to immediately elect S status. For the election timing rule, the company’s first month ends on July 14, and the company’s second month ends on Aug. 14. Therefore, the 15th day of the third month falls on Aug. 29, 2018, which is the deadline for the company to file its S election.

I think you might be late for 2024.