Revoking an S Corp
I am an LLC, single person, sole proprietorship that was converted to an S corp (late relief method) starting with tax year 2013. We are currently filing 2016 on extension (thus due tomorrow), and I want to revoke my s Corp and go back to my single person LLC.
I understand (or think I do), that the accountant would have had to file a 2553, but not an 8823???? The 8823 would have been ONLY IF she wanted me to be taxed as a C Corp.
So, if the above is correct, then can I revoke the S Corp and mark final on the 1120 and also attach 8823 to change my classification back to an LLC, single person Sole Prop, disregarded entity like it was before the S corp election was made???
I guess my confusion is with the 60 month rule because I have NO documentation of an 8823 ever being filed in conjunction with the late election relief 2553 for the tax year 2014.
I’m obviously confused on these, because I am under the impression that I CAN REVOKE my S Corp for 2016, meaning 2017 will be taxed as a C Corp, yes, but only if I DON’T File the 8823 to change me back to the LLC I always was. BUT, if the 60 month thing is the issue, then I guess I am stuck with the s corp through tax year 2018.
I am banking on the notion that a 8823 was never filed. If it wasn’t, then that means to me that if I revoke the s corp, won’t I “by default” be the single person disregarded LLC I was before?????????
There’s no specific document that the IRS requires for businesses to revoke S Corporation status. What most businesses do is send a letter to the IRS stating that they wish to revoke their S Corporation status. Then, you would file federal income tax returns based on on the type of business you would like to be.
For more info on this topic, you can review this article: https://fitsmallbusiness.com/form-8832-instructions/
All the Best-
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