Change entity type from Partnership to S Corp for same year

Forum|Forum|3 years ago
April 27, 2023
2 replies
23 views

My client filed as a partnership for three years, and then found out that they were an S Corporation. I need to amend three years of partnership returns and re-prepare them as S corporation returns. Does anyone know if there's an easy way to take a partnership return and turn it into an S corporation return for the same year?

ProSeries Professional

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IRonMaN

Level 15

There is no magical way to convert one to another in the software. But as a side note, if the returns were e-filed and accepted as a 1065, they are a partnership in the eyes of the IRS.

Slava Ukraini!

M

Mary JoAuthor

Level 2

Unfortunately the IRS did not accept the partnership returns, but they didn't notify my client until three years of returns had been filed. So now I have to amend three years of corporate and individual returns. I was hoping that I didn't have to input everything for the corporate returns (and pay for the corporate returns). I inherited this problem - the original tax preparer filed the first year as a partnership. Thanks for the reply.

T

Terry53029

Intuit Community Champion

What about payroll, W2's, 940,941

BobKamman

Level 15

The hard part isn't doing the returns. The hard part is getting the penalties abated.

The penalty for failure to file a federal S corporation tax return on Form 1120S — or failure to provide complete information on the return — is $195 per shareholder per month. The penalty can be assessed for a maximum of 12 months.

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