IRS Filings for Changing From C Corporation to an S Corporation
Filing Requirements for Filing Status Change provides guidance on the recommended steps to follow for making the election to change from a C Corporation to an S Corporation:
In an effort to more accurately receive and process returns from taxpayers who are requesting to change their filing status from a C Corporation (filing Form 1120) to an S Corporation (filing Form 1120S), the Internal Revenue Service recommends that taxpayers follow the steps below and use the following form.
Step 1. Timely file a paper copy of the Form 2553 with the appropriate Service Center as directed in the Form 2553 instructions. You may mail or fax this form.
Step 2. The corporation will receive an acknowledgement and approval of the S corporation election. If the notification of approval is not received, the corporation should follow-up with the Service Center where the Form 2553 was filed.
Step 3. File the last C Corporation return (Form 1120) by the due date or extended due date. Note: Some taxpayers are required to file electronically. For additional information on which Form 1120 filers are required to file electronically, please see T.D. 9363, I.R.B. 2007-49.
Step 4. File the S Corporation return (Form 1120S) by the due or extended due date. Note: Some taxpayers are required to file electronically. For additional information on which Form 1120S filers are required to file electronically, please see T.D. 9363, I.R.B. 2007-49.
The filing of the initial Form 1120S return will finalize the change of the entity's filing requirement on the Internal Revenue Service's records.
It also provides guidance for taxpayers who have not timely filed their election, both in the scenario where the Form 1120S has been timely filed for the first year of the intended S Corporation Election and where the Form 1120S has not been filed for the first year of the intended S Corporation Election.
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