I filed C-Corp tax returns as S-Corp will this be a problem?


2

I incorporated an S Corp using legalzoom services but they just created a C corp for me. I filed my tax returns as an S-corp with the IRS and the state. I had no activities with the company. I want to know if its fine or do I have to file again?

Tax Tax Structure

asked Apr 4 '12 at 06:53
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Zapoo
303 points
  • You have to elect S corp status with the IRS and also with your state dept of finance/taxes/whatever entity. I think this happens quite often. Just file the paperwork – Tim J 7 years ago
  • I learned today I have a C-corp. Also I want to add that I have no losses or profits with my corp. The IRS told me that I'm fine but next time file with right tax return papers. Now, I need to find out info from my state. – Zapoo 7 years ago

1 Answer


2

First of all, be sure that you don't actually have an S-corp. Did you ever file a form 2553 with the IRS electing to be taxed as an S-corp? If you did, did the IRS send you a notice that it accepted the election? If so, then you're an S-corp. If not, then depending on the facts, it's possible that the IRS will still allow you to choose to be an S-corp. Check out the instructions for form 2553 (http://www.irs.gov/pub/irs-pdf/i2553.pdf) and look at the section on P. 2 called "Relief for late elections."

Otherwise, yes, you will need to file form 1120. If you don't, then you incur penalties for not filing when due (and possibly for not paying taxes when due.)

answered Apr 4 '12 at 07:11
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Chris Fulmer
2,849 points
  • Thanks, I learned is a c-corp. The IRS allowed the s-corp tax return because I did not have no activities with my company. So my tax return will convert to c-corp. Do you think I'll have the same result with state taxes? I will call them in the morning. – Zapoo 7 years ago
  • Most states (that I know of) also require you to file some form with them to elect S status. – Tim J 7 years ago
  • Thanks Tim your the real deal! – Zapoo 7 years ago

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Tax Tax Structure