IRS Rejecting your S-Corp filing?
There were a little over 4.1 million S-Corp tax returns file in 2011 (the most recent year for which this data is available from the Internal Revenue Service). There are several reasons for a corporation to elect to be treated as an S-Corporation as you can see HERE. The primary reasons for electing S-Corporation status revolves around the tax benefits of doing so. One of these benefits is limiting the amount of corporate net income subject to payroll/self-employment taxes.
There are a number of S-Corporation elections that the IRS does not process. Perhaps the election forms were accidentally not filed, or the forms were not filled out correctly, or the forms were lost in the mail. If the IRS receives an S-Corporation tax return but has not accepted an S-Corporation election for the corporation filing the return, the Service will send a notice (LTR3853C) informing the corporation that an S-Corporation election has not been accepted for the entity.
The potential tax consequences of this “non-election” can be great. Fortunately, the IRS provides a process by which it will accept a retroactive S-Corporation election. If you are concerned because you have received an S-Corporation election notice from the IRS, please contact us. Mark Bryant, CPA experience in handling this issue has saved his clients time and money.
Call Us Today, 404-513-0765. During your initial call with Mark Bryant, CPA we will let you ask as many questions you need to determine if we are a good fit for you as a business person and your business. We’ll also have a few questions of our own. We have been told we are the best CPA Atlanta firm in creating a tailored made service plan and handling multiple sub files under one account. So if you are self employed and own two businesses and a rental property and one of those businesses is an LLC – no problem. We are experienced in a full range of business support services.