S Corporations Duluth/Gwinnett CPA: General Instructions for Filing as an S Corporation
Purpose of Form
Form 1120S for all S Corporations should be used to report the following things: income, gains, losses, deductions, credits, etc. for a domestic corporation as well as any other kind of entity in a tax year that calls itself an S Corporation. An S Corporation can be either a C Corporation that elects to be taxed as an S Corporation or an LLC (Limited Liability Company) that elects to be treated as an S Corporation.
Who Has To File
There are a few reasons why a corporation or entity would have to file with Form 1120S, they are revealed below:
-If the corporation claimed to be an S Corporation through Form 2553
- The IRS accepted that election
- The claim and election remain in effect for the current tax year and you have not either revoked the election or failed during the current tax year to continue to meet S Corporation requirements.
Once you have filed Form 2553 the IRS should send you a note of confirmation that your election was received and that it is acknowledged and accepted. If you never received such a letter or note within sixty days you should contact the IRS and ask about your election letter by calling 1-800-829-4933. Form 1120S should not be filed for tax years before the election was made and accepted. I suggest that all companies keep a permanent copy of the S Corporation election and acceptance in their corporate book along with where their incorporation papers are maintained.
There is a possibility that if you failed to file Form 2553 on time, that the IRS may give you time for a late election. Instructions for late elections can be found on the instructions for Form 2553.
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