C Corp. to S Corp.back to C

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  • Bird Legs
    Senior Member
    • Jun 2005
    • 990

    #1

    C Corp. to S Corp.back to C

    Facts: a C Corp, Fy end 9-30. wanted to file for S election. Tried to talk them out of
    it, however,they insisted. So we did. It is now an S Corp. fy end 9-30-06.
    After thinking things over, client says let us go back to C Corp. Can this be
    done before the first year ends after making the S election?
  • veritas
    Senior Member
    • Dec 2005
    • 3290

    #2
    Well I guess you could have the corporation issue a second class of stock. This would terminate the Status as an S Corp.

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    • OldJack
      Banned
      • Dec 2005
      • 1689

      #3
      Originally posted by Bird Legs
      It is now an S Corp. fy end 9-30-06.
      Well... I don't think you can have a S-corp with a 9/30 year end without approval from the IRS for the year-end exception? By default an S-corp has a calendar year end.

      Comment

      • veritas
        Senior Member
        • Dec 2005
        • 3290

        #4
        You must have permission or elect under IRC 444. It's a pain because you must deposit tax with the IRS based on the income that is deferred because of the fiscal year.

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