What will happen if an S Corporation files a return listing an incorrect date of S Election? I have a client who needs several back returns for each of three S Corps done. The IRS Correspondence states that they are looking for Forms 1120S but as near as I can tell the notices do not give date of election and my client no longer remembers. He says he lost the paperwork in a bitter divorce and custody fight which he won because his ex was involuntarily committed.
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Date of IRS Election
If either you or your client calls IRS, you can ask IRS to send the client a copy of the notice granting S status.
I had to do this just a few days ago, so I know it's possible to obtain it.Uncle Sam, CPA, EA. ARA, NTPI Fellow -
Thank You Uncle Sam
What I really wanted to know was whether it's important to go through the step of obtaining them or whether a rough estimate will do for tax return purposes.
It's moot at this point for this client because I found the notices in the stuff he gave me but I would still like to know for future reference how essential it is to exactly nail the date of S Election. Is everything ok as long as the entity has the right to file the return in question as an S Corp?Comment
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Date of S Election
The time when it really matters is when the corporation dissolves and you need to determine any E & P (non AAA) - C status - before S election to determine order of distributions.
Also - depending on state rules, the exact S election date might be important.Uncle Sam, CPA, EA. ARA, NTPI FellowComment
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TY Uncle Sam
I really appreciate your help. I learn something every time I come to this board and you are one of the many many reasons why.Comment
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