E-Filing two different types of business tax returns for the same tax year

[SHN]

I’d like to find out whether it is possible to e-file two different types of business tax returns for the same tax year (2024) in ProSeries.  

We previously e-filed Form 1120-S, and it showed as accepted in ProSeries. However, the IRS does not have a record of receiving or processing that return.  

Because of this issue, we are considering filing Form 1120 instead. Is that possible using the same EIN?

[IRonMaN]

If the return was accepted, the IRS system has the corporation listed as a sub S.  Mail a copy of the return to the IRS.  

[Terry53029]

If your client has choosen to be an Scorp ( a pass through enity) You can't just choose to file a C-Corp return. they are two different enties. Just do as @IRonMaN suggested and mail it in.

[abctax55]

"....Because of this issue, we are considering filing Form 1120 instead"

Are you a professional tax preparer?  I only ask because you don't seem to understand the fundamental differences of an C corp vs an S corp.  And there are major differences from a tax standpoint.

[SHN]

Thank you for your response. The issue is that although an S-corporation election was made, we recently discovered that the election was not processed in the IRS system.  As a result, the Form 1120-S was also not processed.  According to the IRS agents, the S-corporation election was rejected; however, there is no record in their system indicating the reason for the rejection. 

My main question is why the return was accepted as an S-corporation return in ProSeries when the IRS had not accepted the S-corporation election.

The reason we are considering filing a C-corporation return (Form 1120) is that a third party urgently needs to verify that our client has filed a corporate tax return.

[IRonMaN]

ProSeries doesn't accept returns, the IRS does.  I think you are dealing with issues at the IRS, not ProSeries.

As far as the third party goes, if you print the e-filing history of the sub S return, it will show that a return has been filed.

[abctax55]

Trust me... that 'third party' need isn't important considering the (likely) overall consequences.

I'm not in my office today.  I have research & info on how to get a 'retro' S acceptance (assuming your case fits the facts); I had to do it for two clients for their 2023 returns.  Two different sets of circumstances, but we were successful in getting BOTH processed as S-Corps.

Can you wait until tomorrow?  

OR - google "late" or unprocessed S-election.

AND, my guess is no, you couldn't even file, again, as a C-Corp using the same FEIN.  But I wouldn't even try.

[SHN]

Yes, I can wait.  Thank you.

We resubmitted the S-corporation election, Form 2553, as a second request three weeks ago, but we have not yet received a response.

Our client is in a very urgent situation, as they are in the process of selling the business and the buyer’s bank needs to verify the status of the corporate tax return prior to closing. This is the sole reason we are considering filing a C-corporation return (Form 1120), assuming it may be processed more quickly than an S-corporation return in the IRS system.

[SHN]

Yes, we have provided that; however, the bank needs to verify the information directly through the IRS system.

[abctax55]

I'll get you some info tomorrow.

But the two I dealt with took 5-6 months for the IRS to process.

What a mess.

[abctax55]

(it's been a Monday 'round the office...)

I filed F 2553 with "Filed Pursuant to Rev Proc 2013.30, with a 'LONG' 2 page explanation.  I can send that explanation to you if you want to give me an email address.  Send me a private message with it, if you are interested.

[SHN]

I’m good—thank you so much for your help with this.

[abctax55]

YVW.. hope it works out.