Addressing S Corporation Status with the IRS for a Georgia S Corporation

Addressing S Corporation Status with the IRS for a Georgia S Corporation

Determining Your Entity Type Will Affect Both Your Tax Bill and the Way You Operate

Frequently we are asked to follow-up after either a taxpayer or a prior accountant has filed a return in error to fix a prior misstatement or filing. Below is a sample letter one might use if you had inadvertently filed as a C Corporation when the business was an S Corporation and should have filed as a flow-through entity or an IRS Form 1120S:

Atlanta, GA 39901

Dear Sir or Madam

I am writing to follow up on your IRS Letter (copy enclosed). Please note I have enclosed a copy of the S Corporation return, as well as the S Corporation acceptance effective the beginning of the year. Please note the company was not a C Corporation for the tax year noted in the enclosed tax notice and accordingly should and should not file a Form 1120. Accordingly the tax monies assessed in the attached notice are incorrect as the company was an S Corporation for the 2009 tax year, as further reflected on the enclosed Form 1120S. If there had been a previously filed Form 1120 for the company, please void it as it is invalid. Please fix your records accordingly to show that the client was an S Corporation for the tax year in question.

Accordingly please refund any monies previously paid.

I appreciate your attention to this matter and please do not hesitate to contact me should you have any questions.

Very Sincerely Yours, John C. Dillard, CPA, President

When looking at what type of entity your business should be, we strive to balance the legal protection issues vs. the tax savings. Over the years, we have developed the mindset that there is no perfect election but there are ones that are better than others. To read more visit

Contact HIS CPA PC (A Christian CPA Firm) today.

To learn more about addressing IRS Tax Issues and Back Tax Returns visit

Duluth/Suwanee/Johns Creek/Lawrenceville CPA: Income Tax Preparation

Duluth/Suwanee/Johns Creek/Lawrenceville CPA: Financial Statements & Bookkeeping

Duluth/Suwanee/Johns Creek/Lawrenceville CPA: IRS Representation, Back Taxes, Offer in Compromise


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