A “Sample Letter To Revoke S Election” helps a business end its S corp status. Companies choose this status for tax benefits. But sometimes, it no longer makes sense. This letter, often drafted with legal help like Weiss & Associates, officially informs the IRS of the decision.
Need to write one? You’re in the right spot. Crafting this letter can feel daunting. We get it.
That’s why we’re sharing templates and examples. Consider them your starting point. Think of them as training wheels. Let’s make this process easier, together.
Sample Letter To Revoke S Election Weiss & Associates
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Your Email Address]
[Your Phone Number]
[Date]
Weiss & Associates
[Weiss & Associates Address]
[Weiss & Associates City, State, Zip Code]
**Subject: Revocation of S Election**
Dear Weiss & Associates,
This letter serves as formal notification that [Company Name] is revoking its S corporation election, effective [Date of Revocation].
We understand this revocation requires adherence to specific IRS guidelines. We will ensure all necessary forms and documentation are submitted to the IRS in a timely manner.
Please confirm receipt of this letter and advise on any required accounting procedures related to this revocation.
Sincerely,
[Your Name]
[Your Title]
[Company Name]
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How to Write Letter To Revoke S Election Weiss & Associates
Subject Line: Clarity is Paramount
The subject line is your missive’s initial handshake. Be forthright and unequivocal. Instead of vague allusions, opt for precision. A subject line like “Revocation of S-Election – [Your Company Name]” is far more effective.
- Clearly state it’s a revocation.
- Include your company’s full legal name.
Salutation: A Formal Overture
Begin with a professional salutation. While familiarity might tempt you, resist. “Dear Weiss & Associates” is usually sufficient. If you know a specific contact, by all means, address them directly.
- Use “Dear” followed by the recipient’s name or title.
- Avoid overly casual greetings.
Body Paragraph 1: Declaration of Intent
This paragraph is the crux of your entreaty. State your intention to revoke the S-election unambiguously. Reference the initial election date for clarity. Brevity is your ally here.
- Clearly state your intent to revoke the S-election.
- Reference the date of the original S-election filing (Form 2553).
- Include your company’s Employer Identification Number (EIN).
Body Paragraph 2: Rationale (Optional, but Sagacious)
While not strictly mandated, providing a succinct rationale can forestall potential inquiries. A simple explanation, like “shifting business strategy,” suffices. Avoid overly verbose or contentious justifications.
- Briefly explain the reason for revocation (e.g., strategic shift, restructuring).
- Keep it concise and professional.
- Avoid unnecessary details or emotional language.
Body Paragraph 3: Affirmation and Acknowledgement
Reiterate your understanding of the implications stemming from this revocation. Acknowledge your awareness of consequential tax obligations and any procedural ramifications. Demonstrate due diligence.
- Affirm that you understand the ramifications of revoking the S-election.
- Acknowledge potential changes in tax obligations.
- State that the company will comply with all ensuing requirements.
Closing: Cordial Finality
Conclude with a professional closing. “Sincerely” or “Respectfully” are conventional choices. Avoid overly effusive or casual closings.
- Use a formal closing such as “Sincerely” or “Respectfully.”
- Leave space for your signature.
- Type your name and title below your signature.
Enclosures: Substantiating Documentation
List any accompanying documents. This could include board resolutions or other supporting paperwork that bolsters your revocation request. Omission here can lead to unwanted delays. Ensure completeness.
- List all enclosed documents (e.g., board resolution, amended articles of incorporation).
- Ensure all documents are accurately labeled and attached.
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Frequently Asked Questions: Revoking S Election with Weiss & Associates
This FAQ section addresses common inquiries regarding the process of revoking an S election using a sample letter, especially when guided by Weiss & Associates.
Please review the information below for clarification on key aspects of this procedure.
What is an S election revocation and why might I need it?
An S election revocation terminates a corporation’s status as an S corporation, causing it to revert to a C corporation. This might be necessary due to changes in business strategy, tax implications, or ownership structure.
How can Weiss & Associates assist with the revocation process?
Weiss & Associates can provide guidance on the legal and tax implications of revoking an S election. They may offer sample letters and assistance in ensuring compliance with IRS regulations.
What are the key components of a sample revocation letter?
A sample revocation letter typically includes the corporation’s name, address, EIN, a statement clearly revoking the S election, the effective date of the revocation, and signatures of authorized officers.
What is the deadline for filing the revocation with the IRS?
To be effective for the current tax year, the revocation must be filed by the 15th day of the third month of the tax year. Consult IRS regulations for specific deadlines and procedures.
What are the potential tax consequences of revoking S election?
Revoking an S election can significantly alter the corporation’s tax liabilities. It subjects the corporation to corporate income tax and potential double taxation on dividends paid to shareholders. Consulting with Weiss & Associates is recommended.