1120/1120s problem

[sea-tax]

Hello all,

Situation is have a client who has not filed the 2004 corporate return and is now being actively pursued by IRS agent. I have spoken to agent and real friendly just wants return filed.

2004 was first year of operation and first year of corp. Corp minutes say S-corp election to be made unfortunately it was never seen through. Now I need to file the corp return and would like to file an 1120s. Does anyone know if you can still make a late election pursuant to that rev proc. I understand it is pass the filing deadline and extensions but I am looking for a miracle here.

Furthermore old accountant filed personal for 04 with k-1 showing it as 1120s but per irs it was not , so I will have to ammend it unless I can somehow make it so. by the way old accountant prepared 1120s but client was not satisfied with the return so he never mailed it in , once I reviewed it I can see why client did not mail it in . Wrong -wrong -wrong

Anyhow any help would be great I pretty well know I am most likely not going to hear what I would like to hear but I thought I would take a shot. any regs or code sections would help tremendously.

[veritas]

On page 19-4 of the TTB top right hand side looks like the way to go.

[sea-tax]

I am sorry to say that this year i did not get the tax book I got the other book. This was because I was not aware of the tax books existence until it was to late. That will change for next year.

However I think you may be refering to Revenue Procedure 2003-43. Is that correct? If so, then I think I need to file 2553 and right Filed pursuant to rev proc 2003-43 on the top of the 2553. Do I need to write some kind of letter attached to it explaining why the 2553 was not timely filed?

[BOB W]

2553

I would attach a statement> Any old excuse generally works. I like to blame it on the lawyer..............Good luck.........

[veritas]

This is revenue procedure 97-48.

The following factors must be present:

the corp intended to be an S-Corp.

The corp and it's shareholders reported their income consistent with s-corp status

The corp or shareholders did not receive notification from the IRS regarding any problem with S-corp status.

The corp failed to quailfy soley because form 2553 was not timely filed.

I have edited because I don't type.

File form 2553 with "Filed Pursuant to Rev. Proc. 97-48" written across the top. Our software actually does this. There is more but again I don't type.

[sea-tax]

This is revenue procedure 97-48.

The following factors must be present:

the corp intended to be an S-Corp.

The corp and it's shareholders reported their income consistent with s-corp status

The corp or shareholders did not receive notification from the IRS regarding any problem with S-corp status.

The corp failed to quailfy soley because form 2553 was not timely filed.

I have edited because I don't type.

File form 2553 with "Filed Pursuant to Rev. Proc. 97-48" written across the top. Our software actually does this. There is more but again I don't type.

Yes they intended to be an s-corp per corporate minutes, corp never filed 2004 return but share holders did file 2004 and treated it as s-corp. I am familiar with rev proc 2003-43 or 2004-48. However rev proc 97-48 I have never done or heard about.

[OldJack]

I would first ask the audit agent if he would accept the late filing of the election and tax return prepared as such. Give him/her a chance to help get it done. my 2¢±¼

[Lion]

Late S-Corp Election

Client said his lawyer formed an S-Corp for them effective 1 January 2008. I prepared Form 1120-S. IRS writes that they cannot process Form 1120-S because no Form 2553 was filed. Husband and wife shareholders did receive their K-1s and did report K-1 information on their joint personal tax return for 2008.

Do I use Revenue Procedure 2007-62 for an entity that has not yet filed a tax return -- they mailed it in, but the IRS did not process it? Or, Revenue Procedure 2003-43?

By the way, I'm definitely blaming the lawyer!

[Lion]

S-corps are late

Bump......

[BHoffman]

Client said his lawyer formed an S-Corp for them effective 1 January 2008. I prepared Form 1120-S. IRS writes that they cannot process Form 1120-S because no Form 2553 was filed. Husband and wife shareholders did receive their K-1s and did report K-1 information on their joint personal tax return for 2008.

Do I use Revenue Procedure 2007-62 for an entity that has not yet filed a tax return -- they mailed it in, but the IRS did not process it? Or, Revenue Procedure 2003-43?

By the way, I'm definitely blaming the lawyer!

Hi Lion - I would use 2007-62 or else call the Tax Practitioner Hotline at 866 860 4259 after getting a POA from the client.

[Lion]

Thank you

Thank you, B. I think I'll call the Hotline.