I have a client that we have filing his returns since 2011 as 1120S S-Corporation. He has 2 SCorp’s that were supposed formed by an attorney, one for the Bar and the other for the building. Our issue is that IRS claims the bar is a C Corp.
Unfortunately, we don’t have the Form 2553 or the IRS Acceptance Notice.
Here are the facts concerning the bar which we have filed 1120S returns for since 2011.
- For 2011 & 2012 we efiled 7004 1120S Extension and they were Accepted.
- We timely paper filed the Federal & MN corporate returns for 2011 & 2012.
- In 2013 we paper filed the 7004 extension and Federal & MN corporate returns.
- In 2014 we paper filed the 7004 extension and Federal & MN corporate returns. Note: We tried to efile the 7004 and it was rejected. After we paper filed the 1120S we got a letter stating that company was a C Corp.
- Sent IRS a letter stating we had been filing as SCorp. Never got a response
- Paper filed 2015 7004 and 1120S, got letter from IRS.
- I called IRS and they said they had no record of the 1120S returns for all the years.
- We reported all the SCorp K-1 income on the Taxpayer’s 1040 return.
Question: How do I respond to the IRS? I know there is a Rev Proc. that says you can go back 3 1/2 years but then what happens with 2011 & 2012. Appreciate any thoughts