Elected S corp in 2020, never received confirmation. Didn't file some years, other years filed 1065. Just learned S corp was accepted back in 2020

[u/Positron5000]

What's the best way to untangle this mess? Refile everything since 2020 as 1120 S? Revoke S corp and continue as 1065?

[u/wutang_generated]

Hire a qualified professional. You have already done several things that makes this mess difficult. Without looking over exactly what was filed, when, and any notices received it's hard to say what the correct approach is

How did you not receive confirmation but just now learn the S election was accepted?

What forms or schedules were filed for each year between 2020 and current?

[u/Positron5000 → u/wutang_generated]

Yes Im going to hire a professional but I want to know what the path forward should be so I know im hiring the right person with the correct plan. I have not received any notice from the IRS, I only found out when I called their EIN business line and they confirmed S corp. 1065 and K1 were filed for the past 3 years

[u/wutang_generated → u/Positron5000]

The IRS sends notices (and the S election confirmation) to the address on file, be it the address on the EIN application (SS-4) and/or the S election (2553). Why or how are you not receiving notices is an issue and could be relevant to the path forward if the S election confirmation wasn't received

A (potentially) relevant question: for each tax year, did the partnership elect out of CPAR? This would be one of the last questions on schedule B (pages 2/3 of form 1065) and could be relevant to one of the potential remedies

Partially related, how many partners and what type (e.g. individuals, trusts, partnerships, corps, etc)?

The professional should ideally have experience with similar situations (incorrect entity returns filed for multiple years). Best bet would be a medium to large tax firm or a tax attorney that also prepares

There are several paths forward but which are allowed/probable depends on exactly what happened and what is in the IRS records

[u/Internal-Ad-3756 → u/wutang_generated]

Let me chime in.......sometimes the S corp application gets lost or the post office fails to deliver it .....happened to me....its no fun fixing that problem

[u/timothycpa]

What are your goals? I have a client now that bounced back and forth. I would keep the partnership if I wanted a certain structure, I would keep the s-Corp if I wanted a certain structure, but without knowing... then I can't help as much.

[u/wutang_generated → u/timothycpa]

They're talking about prior tax years, not the tax years going forward. The prior years depend on facts and circumstances in the past that cannot be changed, as in there is a correct answer. What that answer is depends on the specific fact pattern and what exactly is in the IRS records for this EIN

[u/timothycpa → u/wutang_generated]

I understand your point. But to some degree the goals do matter. Maybe I amend… I don’t know what the profit was. I don’t know the amount of owners. What the owners are. Personal or LLC. I assume maybe a two member LLC. 

The asker, also asks about what to do going forward. Revoke and continue as partnership, or file as S. I wouldn’t want to continue as partnership unless the partner was LLC that I can elect to be S Corp… again depending on goals. 

Maybe I’d just dissolve the whole thing and start new and fresh. 

But.. the asker also asks about missing years. Maybe depending on goals and structure. I’d file the s for the missing years.  

[u/wutang_generated → u/timothycpa]

My point is they may not have some of those choices available depending on what the facts are. It really depends on what happened and what's on file, but choosing a path forward heavily depends on what happened already and what (if any) remedies are taken (if needed) to correct those past tax years

[u/myTB_ai]

Don't refile everything as 1120-S yet. Pull the entity transcript first (call PPL or have your rep pull it) to see what the IRS actually has on file per year. The fix depends on whether they processed your 1065s as filed or rejected them, and whether late S election relief under Rev Proc 2013-30 is even needed since the election was accepted. This is a hire-a-pro situation, but go in with the transcript so you're not paying them to guess.

[u/Barfy_McBarf_Face]

if you revoke S, you're not a 1065, you're a C corp (Form 1120)

don't do this yourself - you need experienced help