Revoke S Corporation Election
To revoke a Subchapter S election, submit a statement of revocation to the service center where you file your annual return. The statement should state: The corporation revokes the election made under Section 1362(a) and The S corporation’s EIN.
Consequences of Revoking S Corp Election
If its S election is revoked, the entity reverts to being a C corporation for tax purposes, unless it makes a subsequent election to be taxed as a partnership or LLC.
Entity Classification Election Revocation
Under the IRS procedure, the taxpayer may submit a request to withdraw the election by the 2020 return due date. Once revoked, the entity’s status reverts to its default classification.
Changing from S Corp to Sole Proprietorship
File dissolution documents. Transfer corporate assets and liabilities to yourself.
Retroactive Revocation of an S Corporation Election
There are over 100 stockholders. Stock is held by a non-US citizen. An LLC or corporation holds shares.
Revocation Statement for S Corp
A revocation statement must contain: A statement that the corporation is revoking its Subchapter S election under Section 1362(a).
3-Year Rule for S Corp Election
To revoke a Subchapter S election, submit a statement to the service center where you file your annual return. The statement should state the corporation revokes the election made under Section 1362(a) and the S corporation’s EIN.