IRS Posts Guidance on Changing from C Corp. to S Corp.

By Alistair M. Nevius, J.D.

The IRS has posted on its website guidance for C corporations that wish to change to S corporation status. The guidance lists four steps that corporations should take:

1.Timely file Form 2553, Election by a Small Business Corporation (which is due no more than 2 months and 15 days after the beginning of the tax year in which the election is to take effect).

2.Follow up with the Service if acknowledgment and approval of the S corporation election are not received.

3. File the final Form 1120, U.S. Corporation Income Tax Return, by the due date or extended due date.

4. File a Form 1120S, U.S. Income Tax Return for an S Corporation, by the due date or extended due date.

The guidance also discusses relief available to corporations that have not timely filed their S corporation election request. The guidance is available at www.irs.gov/businesses/corporations/article/0,,id=179841,00.html.

Newsletter Articles

SPONSORED REPORT

Time to prepare for overtime changes

As an employer, trusted business adviser, or HR professional, you will need to be aware of exemption guidance, record requirements, advice for clients, and typical problems in applying overtime pay.

PRACTICE MANAGEMENT

CPAs Contend With Tax ID Theft

Tax-related identity theft fraud remains a widespread problem that is often difficult for victims and their tax preparers to correct.