Discussion:C-Corp Amended/Current S-Corp
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Discussion Forum Index --> Accounting Questions --> C-Corp Amended/Current S-Corp
RichKMACPA (talk|edits) said: | 3 March 2010 |
| OK, I feel that I have a complicated situation, and am trying to figure it out. I have a corporation, which changed from a C to an S following the 4/30/07 year end. I have found that the 4/30/07 Form 1120 was not completed properly. Changing this will result in a loss. My question regarding this is, I am past the 3 years for the 4/30/06 and 4/30/05 carryback period, and the 12/31/07 return was for an S-Corp. I am only a 209 refund for this client if that is all I can get, I just want to make sure that I am correct that those prior 2 years are not eligible for the carry back.
My second dilema is that the sole shareholder sold her stock in the corporation in August of 2009. In addition to the cash received, she also received a vehicle that was owned by the corporation. She does not have enough basis in the company to call it a distribution of S-Corp earnings. Would she be required to pick up the excess amount as a dividend from the C-Corp earnings remaining on the books. I appreciate your help in these matters. Rich | |
| 7 March 2010 | |
| It appears you are on the right track on the second issue. The first issue isn't really an issue. The three-yr SOL on amendments to carry back NOLs is based upon the return generating the NOL. You can still carry your NOL back to 4/30/05 and any left over to 4/30/06. Good luck! | |
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