This article is about letters to the IRS. Your S corp was revoked. You need to write a letter.
We’ll give you sample letters. These are templates. They’ll help you write your own letter. Use them as a guide.
These samples cover different situations. You’ll find the right one. Writing to the IRS can be tricky. These samples make it easier.
Sample Letter to IRS for S Corp Revoked
[Your Name]
[Your Address]
[Your Phone Number]
[Your Email Address]
[Date]
Internal Revenue Service
[IRS Address]
Subject: Revocation of S Corporation Status – Taxpayer Identification Number [Your Taxpayer Identification Number]
Dear Sir/Madam,
This letter formally notifies you of the revocation of our S corporation status, effective [Date of Revocation]. We understand this requires adjustments to our tax filings. The revocation resulted from [Briefly and clearly state the reason for revocation, e.g., failure to file timely forms, voluntary revocation].
We have already taken steps to ensure compliance with all relevant regulations. Specifically, we [Describe the actions you’ve taken, such as consulting with a tax professional, filing necessary amended returns, etc.]. This includes carefully reviewing all applicable IRS guidelines to understand our current tax obligations. We are committed to a smooth transition and accurate reporting of our income.
We request confirmation of receipt of this notification. We are prepared to cooperate fully with any further inquiries you may have. Please direct any questions or requests for additional information to [Your Phone Number] or [Your Email Address]. We are available at your convenience for any necessary clarification.
Please confirm receipt of this letter at your earliest convenience. Failure to receive confirmation will prompt us to follow up with a phone call next week. Accurate and timely tax compliance is our priority.
Sincerely,
[Your Signature]
How to Write a Sample Letter to IRS for S Corp Revoked
Understanding the Gravity of the Situation
The revocation of your S corporation status is a significant event, fraught with potential tax ramifications. It’s not a minor administrative hiccup; it fundamentally alters your tax liability. Procrastination is inimical to a favorable outcome. Act swiftly and decisively.
Gathering Essential Information: A Necessary Precursor
Before even considering drafting your letter, meticulously gather all pertinent documents. This includes your revocation notice from the IRS, your corporate tax returns (both pre- and post-revocation), and any correspondence with the IRS regarding the matter. Accuracy is paramount; omissions can be deleterious.
Structuring Your Letter: A Blueprint for Persuasion
Your letter should follow a clear, logical structure. Begin with a formal salutation, addressing the appropriate IRS department. State your purpose concisely in the introduction. Provide a chronologically ordered account of events leading to the revocation. Conclude with a clear statement of your desired resolution and contact information.
Articulating your Case: Precision is Key
Employ precise language, avoiding ambiguity or obfuscation. Present your arguments cogently and factually, avoiding emotional appeals or hyperbole. If you’re contesting the revocation, present concrete evidence supporting your case. Be succinct but comprehensive.
Addressing Potential IRS Concerns: Proactive Mitigation
Anticipate potential IRS concerns and address them preemptively. If there were procedural irregularities, acknowledge them and explain mitigating circumstances. Demonstrate a proactive and cooperative attitude. This fosters a more receptive environment.
Maintaining a Formal Tone: Professionalism is Paramount
Maintain a consistently formal and professional tone throughout the letter. Avoid colloquialisms or informal language. Proofread meticulously for grammatical errors and typos. A poorly written letter can undermine your credibility. Remember, first impressions are indelible.
Following Up on Your Letter: Ensuring Action
After sending your letter, retain a copy for your records. Follow up with a phone call within a reasonable timeframe to confirm receipt and inquire about the processing status. Persistent, yet respectful, follow-up is often crucial for expediting resolution.
FAQs about sample letter to IRS for S Corp Revoked
Revoking S corporation status requires careful communication with the IRS. Understanding the process and crafting a clear letter is crucial for a smooth transition.
What information must be included in a letter to the IRS regarding an S corporation revocation?
A letter to the IRS regarding an S corporation revocation should include the company’s Employer Identification Number (EIN), the date the S corporation election was originally made, the date the revocation is effective, the reason for revocation (if applicable but not mandatory), and the signatures of authorized individuals. It’s also helpful to include contact information for correspondence.
Is there a specific IRS form required to revoke S corporation status?
While there isn’t a dedicated form solely for revoking S corporation status, Form 1120-S (U.S. Income Tax Return for an S Corporation) plays a crucial role. The revocation is typically indicated on this form for the year of revocation and subsequent tax years, clearly stating the effective date.
When should the letter to the IRS be sent to ensure proper processing?
The letter requesting revocation of S corporation status should be submitted to the IRS by the due date of the tax return for the year in which the revocation becomes effective. This usually means sending the letter along with the relevant tax forms before the March 15th deadline (or its extension).
What happens after the IRS receives the revocation letter and associated tax forms?
After receiving the notification and the relevant tax forms, the IRS will process the revocation. The corporation will then be treated as a C corporation for tax purposes from the effective date of the revocation. Future tax filings will reflect this change in status.
What are the tax implications of revoking S corporation status?
Revoking S corporation status can have significant tax implications. The corporation may experience different tax rates and filing requirements. It’s essential to consult with a tax professional to understand the potential impact on the corporation’s tax liability before making this decision. Careful planning is crucial to minimize any negative consequences.
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