Client formed LLC, and elected to be a s corp 9/28/10. Since then he has read up and has decided that was not the right decision, and would rather be a partnership. (Did not ask me before making decision) He has received a letter from IRS telling him of the requirements. Is there a way to back out, unelect, ?????
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T T B S B ed 19-5
would seem to indicate that if he is a calendar year S Corp he needed to revoke by 3/15 in order to have it be valid for the year of election. So there's no rush about getting it done to take effect for 2011 but it's too late for 2010.
On the other hand I'm not very knowledgeable about S Corps and there may be something special on account of he just elected S this year. Does anyone know of such an exception?
See this thread for what appears to be confirmation that you might pull off what you want by calling the Tax Practitioner's Priority Line. http://www.thetaxbook.com/forums/sho...?p=3116&page=2Last edited by erchess; 12-22-2010, 04:39 PM. -
I checked that thread and then called the tax pract hotline. She was very helpful and looked when the S corp election took place and told me I can revoke the election. She sent me some pages out of a manual that she said spelled out what I had to do. I going to try and elect out for this year She said they would send me a letter letting me know of the outcome. She thought I would get the letter in 30 days, so I will know how to file. Hope all goes well.Comment
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