Partnership Techanical Termination/S-Corp Conversion

[mario100]

I have a client for whom I filed a Technical Termination, as one partner over 50% left and two new partners WERE to come in. But now, I have been informed that the two new partners no longer wish to be part of the business, so there is no partnership to move forward on.

My question is, it looks like the remainder part of the year, the sole owner would have to file as a Schedule C, if that is true, and the return was filed as a Technical Termination/Final, can I elect the S-Corp status using form 2553 without losing the Federal EIN? I read that you must file as a new entity with a new EIN, but other places say nothing about losing the EIN, and I cannot find specific information on the IRS website.

I appreciate any help, thank you!

[kathyc2]

I have a client for whom I filed a Technical Termination, as one partner over 50% left and two new partners WERE to come in. But now, I have been informed that the two new partners no longer wish to be part of the business, so there is no partnership to move forward on.

My question is, it looks like the remainder part of the year, the sole owner would have to file as a Schedule C, if that is true, and the return was filed as a Technical Termination/Final, can I elect the S-Corp status using form 2553 without losing the Federal EIN? I read that you must file as a new entity with a new EIN, but other places say nothing about losing the EIN, and I cannot find specific information on the IRS website.

I appreciate any help, thank you!

Unless the company is an LLC, you can't just elect S corp status.

There is also a once every 5 year change in tax status filing for a LLC. I don't know if there is an exception to that rule if it is a forced change from no longer qualifying as a 1065 filer.

https://www.irs.gov/businesses/small-businesses-self-employed/do-you-need-a-new-ein