C corp electing S corp status as of 4/27/16

[Melanie]

Tax payer elected to be S corp in 4/27/16 (approved by IRS) I would like to double check if this is correct the way I understand it.... Hope you can help

So tax payer must file 1120S for the period of S corporation status (April 27,2016-Dec 31,2016) and for the period he was a C corp file a 1120 (short year Jan-April 26,2016)

Your reply would be greatly appreciate it. Thank you

[claud46]

C-Corp to S-Corp AND? IRC 1374 hum

Was the C-Corp Cash Basis or Accrual Basis
1374 is BUILT-IN-GAINS

https://www.law.cornell.edu/uscode/text/26/1374

[ttbtaxes]

Have you determined whether there is a built-in gains? If so, do you know what will trigger it by electing S status? For example, if the C corporation was cash basis, the collection of those receivables may trigger the tax.

You need to provide more information. Was there E&P at the time of the election? Was a valuation done to determine whether there was goodwill? And more.

[Melanie]

Thank you for your replies. There was no income or assets under the C corp. Taxpayer filed for C corp and turned around and elected the S corp within the time period to do so. There was no income generated for the full 2016.