USA Convert from C Corp to S Corp and tax year change

[Bhaskar Chatterjee]

I opened a C-Corporation in 8th Jan 2015. That time I was expending to have a consulting opportunity. But that opportunity never materialized in January. However that time I also filed SS-4 and got the Tax Id for the C Corporation. However I selected the fiscal year ending as 31st August.

But recently I got the opportunity and I receive to receive the money from around October 2015 onwards.

I am thinking of converting to S-Corporation but I have a problem. Since my C Corporation has year end of 31st August I would need to file 1120 for fiscal year ending 31st August 2015. But if I elect to convert to S Corporation by filing Form 2553, it is already past 75 days since the start of the corporation. Therefore I believe IRS would only allow me to elect as of 1st January 2016 (I think IRS usually allows calendar year for S Corporation).

If I file 1120 for fist year ending 31st August 2015 and 1120S for the calendar year starting 1st January 2016 to 31st Dec 2016 (Assuming IRS allows me a favorable approval starting 1st January 2016).

What do I file for the 4 months between 1st Sep 2015 and 31st December 2015 ? This is the period between the fiscal year-end (31st August 2015) of my C Corp and 1st Jan 2016 which is the start calendar year of my S Corp.

Your feedback would be greatly appreciated.

 

[ailyn]

I opened a C-Corporation in 8th Jan 2015. That time I was expending to have a consulting opportunity. But that opportunity never materialized in January. However that time I also filed SS-4 and got the Tax Id for the C Corporation. However I selected the fiscal year ending as 31st August.

But recently I got the opportunity and I receive to receive the money from around October 2015 onwards.

I am thinking of converting to S-Corporation but I have a problem. Since my C Corporation has year end of 31st August I would need to file 1120 for fiscal year ending 31st August 2015. But if I elect to convert to S Corporation by filing Form 2553, it is already past 75 days since the start of the corporation. Therefore I believe IRS would only allow me to elect as of 1st January 2016 (I think IRS usually allows calendar year for S Corporation).

If I file 1120 for fist year ending 31st August 2015 and 1120S for the calendar year starting 1st January 2016 to 31st Dec 2016 (Assuming IRS allows me a favorable approval starting 1st January 2016).

What do I file for the 4 months between 1st Sep 2015 and 31st December 2015 ? This is the period between the fiscal year-end (31st August 2015) of my C Corp and 1st Jan 2016 which is the start calendar year of my S Corp.

Your feedback would be greatly appreciated.

Did you ever get any feedback on this isue? Please advise since I have a client who is in the same situation