C Corp. to S Corp.back to C

[Bird Legs]

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]

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

[OldJack]

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.

[veritas]

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.