LLC to S Corp

[jamessite]

A client created an S Corp to change from an LLC. I had nothing to do with it and I believe she did it herself. Does the S Corp need a new EIN or can she use the same EIN as the LLC? I always thought that changing the type of business required a new EIN. Would that make the S Corp invalid if it has the same EIN as the LLC?

[TaxGuyBill]

Was the original LLC a "Disregarded Entity" (a Single Member LLC that did not have any elections to be taxed as a corporation)?

Is it still an LLC, but merely made the S-election by filing Form 2553?

Or did the taxpayer legally form a new corporation, or legally convert the LLC to a corporation, through the Secretary of State, and then file Form 2553 to be taxed as a S-corporation?

Do you have a copy of the acceptance letter for the S-election?

[jamessite]

I asked her all those questions and how did she create the S Corp and she says she does not know or remember. She has not even looked in her records as to how it was done. I think she just went poof and now I am an S Corp. If I had my way I would love to lose her as a client. 2022 was the first year I did her taxes and every time I told her what she owed, she found more in expenses.

[Taxes-by-Rocky]

Obtain POA and ask IRS for history and any necessary copies (e.g., CP575 notice, election approval, 2553, prior year returns filed, etc.).  Check state depending on requirement to file state election.

[jamessite]

I requested a POA from IRS about six weeks ago and neither she nor I have gotten any response. She also put in a letter to terminate the S Corp and has heard nothing back about that either.

[Taxes-by-Rocky]

My own experience....paper has been very slow these days with the IRS.  Suggest simply calling them and send the POA real time while on the phone.

[TaxGuyBill]

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@jamessite wrote:

I asked her all those questions and how did she create the S Corp and she says she does not know or remember. She has not even looked in her records as to how it was done.

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If I had a client that said that, I would tell her to call me when she finds out the answers.