Too late to make a retroactive S-corp election for SMLLC?

Forum|Forum|3 years ago
October 26, 2022
1 reply
16 views

Hello - If a Schedule C 1040 has been filed already, is it possible to make a retroactive s-corp election and amend the 1040, filing an 1120S as well for 2021? Also brings the question of whether there was payroll with timely tax deposits, but what if there wasn't? Does that void the election? Maybe it would be better to elect for 2023 if that was the case...?

Any help is appreciated. Thanks.

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This topic has been closed for replies.

Best answer by sjrcpa

There has to be a good reason for making a late S election. As Bill was alluding, it's usually they intended to be an S Corp; did everything in accordance with being an S Corp, and someone (taxpayer, accountant, attorney) screwed up by not filing the election on time.

Your situation does not seem to fit.

T

TaxGuyBill

Level 15

It is too late for 2021.

For 2022, had they intended being taxed as a S-corporation at the beginning of the year? The lack of payroll seems to indicate that was not their intention.

N

n1njahAuthor

Level 3

Thank you for your response. I'd have to verify that for 2022 but it may be the same for 2021, no payroll. I assume 2023 is still possible as long as payroll is there?

And 2021 is too late mainly due to the 1040 already being filed or because of the issue of payroll?

Thank you

sjrcpaAnswer

Level 15

There has to be a good reason for making a late S election. As Bill was alluding, it's usually they intended to be an S Corp; did everything in accordance with being an S Corp, and someone (taxpayer, accountant, attorney) screwed up by not filing the election on time.

Your situation does not seem to fit.

The more I know the more I don’t know.

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