HELP -- IRS contacted me regarding form 8832?

Question

I am an LLC, and filed taxes as a corporation this year. However, I did not file form 8832 (because I didnt know I had to until now)--so now the IRS is saying to show proof of the form in order to be able to file my taxes (which I do not have) otherwise I cannot file as a corporation. My dilemma is, since business taxes have been due for the last 2 months, what do I do now? Do I send a late schedule C? I filed as no income for the year (since it was my first year). Can I file form 8832 for next year so I can start filing as a corporation? I need to know what to do. Thanks!!

Answer 1

There are a lot of variables in your situation. One question I have is: did you actually do any business under the name of the LLC? If not, then you can file 8832 using the "Late election relief" provision in the 8832 instructions (linked below), and you can choose the "initial classification" with an effective date of 1/1/2007.

However, if you HAVE done business as the LLC, then it is probably too late to go back and fix '06 to file as corporation. The provisions for the late election require that the first federal tax return has not yet come due when the election is made. The fact that you already filed a corporate return tells me that you intend to have a year-end that has already passed, so you would not qualify for the late election.

So: did you do business as an LLC or not? If no, then file 8832 with the penalty relief and request an effective date of 1/1/07. If you DID you business as the LLC, amend your 2006 1040 to include Sch. C and report the '06 LLC activities, then file 8832 requesting a "change in current classification" and request it effective as of 1/1/07.

Answer 2

The form 2553 INCLUDES the 8832. You do NOT do both forms. (This changed quite a few years ago!) By doing the 2553, you are DEEMED to have done the 8832 to be a corporation and then elected the S-corp status. (If you ever terminate the S corp status, you would revert to a C corp, not a partnership.) If you read and understood the instructions you would have seen that the 8832 is not used.

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Answer 3

Form 8832

Answer 4

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Answer 5

File form 8832 for next year. It's too late for this year.

Answer 6

irs contacted form 8832

Answer 7

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Answer 8

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Answer 9

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Answer 10

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