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C Corp. to S Corp.back to C

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    C Corp. to S Corp.back to C

    Facts: a C Corp, Fy end 9-30. wanted to file for S election. Tried to talk them out of
    it, however,they insisted. So we did. It is now an S Corp. fy end 9-30-06.
    After thinking things over, client says let us go back to C Corp. Can this be
    done before the first year ends after making the S election?

    #2
    Well I guess you could have the corporation issue a second class of stock. This would terminate the Status as an S Corp.

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      #3
      Originally posted by Bird Legs
      It is now an S Corp. fy end 9-30-06.
      Well... I don't think you can have a S-corp with a 9/30 year end without approval from the IRS for the year-end exception? By default an S-corp has a calendar year end.

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        #4
        You must have permission or elect under IRC 444. It's a pain because you must deposit tax with the IRS based on the income that is deferred because of the fiscal year.

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