Partnership should have been filed as S-corp 2011

[kpangelinan]

Clients did the S-corp election effective Jan 1, 2011, but the preparer didn't know this and filed as he normally would as a partnership on 1065.

Clients filed a second 2553 and then received a letter from the IRS stating they are already have a valid election on file effective Jan 1, 2011.

Question is, do we filed a late S-corp return with all of their 2011 numbers and if so, how do we fix the partnership return for 2011 that should've never been filed?

Does the partnership need to amend 2010 to indicate that that is their final return?

Thanks for any help.

[ChEAr$]

Clients did the S-corp election effective Jan 1, 2011, but the preparer didn't know this and filed as he normally would as a partnership on 1065.

Clients filed a second 2553 and then received a letter from the IRS stating they are already have a valid election on file effective Jan 1, 2011.

Question is, do we filed a late S-corp return with all of their 2011 numbers and if so, how do we fix the partnership return for 2011 that should've never been filed?

Does the partnership need to amend 2010 to indicate that that is their final return?

Thanks for any help.

Yes and Yes. The 1120s should be filed along with K1's of course, and an amended 1065 also filed with zeros in appropriate places. Attach suitable explanation.

Now many might disagree with me, but I would send both in the same envelope,
along with cover letter to Ogden along with POA just in case.

Chances are there might be some variances between the original k1 and the new ones, but that of course would be a matter for each stockholder to address.

This sounds like an LLC really. Right?

[JohnH]

I agree with Harlan regarding filing both in the same envelope in this case. Once the 1120S is processed, you're going to get a letter assessing a big late filing penalty. You can probably ge it abated by showing that the 1065 was filed in good faith, but I'm betting it will be a battle.

May as well come out with both guns blazing - maybe even request that the penalty be waived in your initial explanatory letter accompanying the return (not that anyone is likely to pay any attention to it).

[kpangelinan]

Yes and Yes. The 1120s should be filed along with K1's of course, and an amended 1065 also filed with zeros in appropriate places. Attach suitable explanation.

Now many might disagree with me, but I would send both in the same envelope,
along with cover letter to Ogden along with POA just in case.

Chances are there might be some variances between the original k1 and the new ones, but that of course would be a matter for each stockholder to address.

This sounds like an LLC really. Right?

I agree with Harlan regarding filing both in the same envelope in this case. Once the 1120S is processed, you're going to get a letter assessing a big late filing penalty. You can probably ge it abated by showing that the 1065 was filed in good faith, but I'm betting it will be a battle.

May as well come out with both guns blazing - maybe even request that the penalty be waived in your initial explanatory letter accompanying the return (not that anyone is likely to pay any attention to it).

Yeah, thanks Harlan, thanks John....I'm thinking along the same lines as you both.

[JohnH]

We're all just being way too agreeable today - must be a Monday...

We need some controversy, just to keep it interesting.