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Posting of Estimated Tax Payment s

Derf
Level 1

Client filed prior year taxes on 1120-S. They were advised to start reporting on Schedule C and income and expenses did warrant the 1120C. The 2020 self-employment is being incorporated with their personal MFJ return. My dilemma is where to report the estimated tax payments. It seems they used the EIN as identity for the payments. With no 1120-S to report them where can they be reported on Schedule C?   

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qbteachmt
Level 15

This is very confusing.

If they formed a corporation to run a business, and elected to be treated as an S corp, they would be employees and the S corp files an 1120S. All shareholders get a K-1 from that corporate tax return, which is a pass-through entity, and that is part of their 1040 prep. Shareholder-employees also are on payroll; that's a requirement.

An LLC also can elect to be treated as an S corp. LLC is State structure, so the Feds would expect you to either be partnership or corporation in treatment.

A single-member partnership cannot exist as Partnership. That person either has incorporated or is operating as a Sole Proprietorship. The SP person (owner) never is on payroll. The SP might have need for an FEIN, and need payroll for the other people who would be on payroll.

The 1120C is:

General Instructions

Purpose of Form

Use Form 1120-C, U.S. Income Tax Return for Cooperative Associations, to report income, gains, losses, deductions, credits, and to figure the income tax liability of the cooperative.

Who Must File

Any corporation operating on a cooperative basis under section 1381 and allocating amounts to patrons on the basis of business done with or for such patrons should file Form 1120-C (including farmers' cooperatives under section 521 whether or not it has taxable income).

 

Just what are your taxpayer's facts?

Who told them to file Schedule C?

Who told them to file 1120C?

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Derf
Level 1

You asked if I was satisfied with the response to my question, the answer is no. The responder answered the question as if I knew nothing about what my client needed. His answer was far too technical and they did not even respond to the question. I finally, after much searching found my answer. I was hoping the community would have given me a solution without hours of research.  

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qbteachmt
Level 15

@Derf 

The forum platform has automated response systems that send email. That's likely "who" asked if this solved your question by asking if you were satisfied.

And you were not given an answer. You got a response, because this is a discussion. You also were asked some questions to clarify what made no sense based on the facts as presented. You don't seem interested in answering the questions, so it's hard to give you help. You have to participate in a discussion with your peers that volunteer to be helpful. This is not customer support nor live chat with tech support.

It wasn't technical. It was In Progress.

No one can respond to a confusing set of info.

And now that you "found my answer" you should share it here, because that is the point of this Peer User volunteer community = to help each other.

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qbteachmt
Level 15

Here is more answer to your confusion:

There is no such thing as Estimates Payments for 1120S S corp, because that is supposed to be a payroll event for the shareholder-employee. The rest is passed through to the shareholders on the K-1 for their reporting of taxable income personally.

There is no such thing as Estimates for the EIN, in this scenario.

But we never established how this can be a Coopreative Association on the 1120C as well as the S corp and the Schedule C. You cannot switch to Schedule C and ignore the S Corp, unless you closed it out.

You have too many conflicting things in the first part of your topic here. I am sorry it won't be resolved.

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