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S-Corp election approved after already filed 1120 as C-corp

Level 3

A corporation filed their 2019 taxes in February 2020 on form 1120 as C-corp.  They must have also filed an election to be treated as an S-corp because in Sept 2020 they received the IRS letter stating their election to be treated as an S-corp effective Jan 1, 2019 was approved.

Since their s-corp election was effective Jan 1, 2019, shouldn't the 2019 tax return have been filed on an 1120-S?   Can they leave 2019 filed on a regular 1120, or do they need to go back and amend to an 1120-S?

Thanks in advance!

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2 Replies 2
Level 15

Filing on an 1120 for an 1120S entity is like filing a 1041 instead of a 1040 and calling it good.  If they really want to be a Sub S when they grow up, they need to file an amended 1120 showing zeroes and and also file an 1120S.

ACME Taxes, Tatoos, Tires and Tomatoes (I had to get rid of the turtles - they kept running away)
Level 15

AND.... the individual's F 1040 (and any state returns) will need to be amended to include the S-Corp K-1 amounts.

Former Chump..oops..AllStar...I used to be a people person, then people ruined it

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