1120S for Partnership

[Corduroy Frog]

This is an outgrowth of a previous post, where I was left with a C corp client who received a statement (K-1 Form 1120S) from another corporation. Of course, the existence of a C corp shareholder disqualifies a corporation from Sub S status.

The explanation I got was that the "corporation" was in reality a "limited partnership." That being the case, I would expect to receive a K-1 from Form 1065 and not 1120S. There are other financial abnormalities, or so it would appear, but not in the context of this discussion.

Is anyone aware of a situation whereby an 1120S would be prepared for a "limited partnership?"

[BHoffman]

This is an outgrowth of a previous post, where I was left with a C corp client who received a statement (K-1 Form 1120S) from another corporation. Of course, the existence of a C corp shareholder disqualifies a corporation from Sub S status.

The explanation I got was that the "corporation" was in reality a "limited partnership." That being the case, I would expect to receive a K-1 from Form 1065 and not 1120S. There are other financial abnormalities, or so it would appear, but not in the context of this discussion.

Is anyone aware of a situation whereby an 1120S would be prepared for a "limited partnership?"

When they made the election they gave up their Partnership tax status, limited or not.

I believe it is a moot point since it's obvious the 2553 election is invalid for more than one reason. Your client is listed as a Corporation, and your client did not sign the 2553.

IMHO: The people who set this up are complete idiots. I would take the attitude of "protect my client", and I would do whatever it takes to make sure my guy is not going to be victimized by the incompetence of these other folks.

This is very interesting, and I hope you continue to update us.