Question

1120 is required

Forum|Forum|4 years ago
February 14, 2022
1 reply
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I formed a corporation in June 2021. Prior to June 2021, I have been a sole prop.
So how should I file tax returns for 2021? Short year 1120 is required?

I am in the process of applying for S status with IRS for calendar year 2022.

Not A Product Question

D

DianeW777

Yes, file the 1120 for a short tax year for the part of 2021 the corporation was formed. File your sole proprietorship through the period of January 1 - the day before you formed the corporation.

A calendar year small business corporation has been filing Form 1120 as a C corporation but wishes to make an S election for its next tax year beginning January 1. The 2-month period ends February 28 (29 in leap years) and 15 days after that is March 15.

2022: As long as a company elects S corporation status (and the IRS has accepted that election), it must file Form 1120-S. The form is due by the 15th day of the third month after the end of its fiscal year—generally, March 15 for companies that follow a calendar year.

When To Make the Election Complete and file Form 2553: (For electing S corporation status)

• No more than 2 months and 15 days after the beginning of the tax year the election is to take effect, or

• At any time during the tax year preceding the tax year it is to take effect.

For this purpose, the 2-month period begins on the day of the month the tax year begins and ends with the close of the day before the numerically corresponding day of the second calendar month following that month. If there is no corresponding day, use the close of the last day of the calendar month.

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M

Mabeline890Author

Thanks for the answer!

Do I need to file and pay c-corp estimated tax before I receive scorp approval letter from irs?
If scorp status is approved, do I get estimated payments back? If so, how?

AliciaP1

Yes, your 2021 1120 is due to be filed (without an extension) by 3/15/22.

A C-Corp is responsible for paying taxes on income before distributions, so if you report a profit, you will know the amount due when you complete your return. It is not an estimated payment.

If your S-Corp election is approved then it will change how you report your 2022 taxes, but it will have no effect on your 2021 taxes payable by the C-Corp. You will not get any amount back.

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