1. column
  2. NEWS NOTES

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

By Alistair M. Nevius, J.D.

Please note: This item is from our archives and was published in 2008. It is provided for historical reference. The content may be out of date and links may no longer function.

Related

TOPICS

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.