Solved: I am apparently a "corporation"? Help!
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Level 2

I am apparently a "corporation"? Help!

I filed my personal taxes and included all my business information on Schedule C. The IRS is telling me that I am an S-corporation and that I have to file corporate income tax and redo my personal taxes. I don't even know where to begin. One IRS person told me that I am already 3 months behind on filing the corporate tax form so I can anticipate large fines and penalties. I am just a person with one 1099 client, soon to be zero. I don't know what this S-corporation business is all about.

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Accepted Solutions
Level 15

I am apparently a "corporation"? Help!

If you are not going to seek help from a local professional and you are going to clear up this mess yourself ...

 

Step 1 -  when you applied for the EIN you must have chosen the S-Corp option which requires you to file an 1120-S form not just a Sch C on the from 1040.  Check the IRS notice you should have received telling you this. 

 

Step 2 - file the 1120-S as required then when the IRS sends the penalty notice ask for forgiveness siting your ignorance  of the requirement ... they usually forgive you the fist time you file late.  

 

Step 3  -  amend the personal return adding the K-1 form from the 1120-S and remove the incorrect Sch C. 

 

The 1120-S requires the TT Business program to complete it :  https://turbotax.intuit.com/small-business-taxes/

View solution in original post

5 Replies
Level 15

I am apparently a "corporation"? Help!

Did you set up a Single Member LLC or get an EIN number?  You must have checked a box on a form for S corp.  You should probably go to a local CPA or accountant and see what to do.

Level 2

I am apparently a "corporation"? Help!

My Maine paperwork says that I am a single-member LLC. I'm having trouble finding anyone local who does this kind of work. But maybe it doesn't need to be someone local? I live in a remote area. 

Level 15

I am apparently a "corporation"? Help!

 
Level 15

I am apparently a "corporation"? Help!

If you are not going to seek help from a local professional and you are going to clear up this mess yourself ...

 

Step 1 -  when you applied for the EIN you must have chosen the S-Corp option which requires you to file an 1120-S form not just a Sch C on the from 1040.  Check the IRS notice you should have received telling you this. 

 

Step 2 - file the 1120-S as required then when the IRS sends the penalty notice ask for forgiveness siting your ignorance  of the requirement ... they usually forgive you the fist time you file late.  

 

Step 3  -  amend the personal return adding the K-1 form from the 1120-S and remove the incorrect Sch C. 

 

The 1120-S requires the TT Business program to complete it :  https://turbotax.intuit.com/small-business-taxes/

View solution in original post

Level 2

I am apparently a "corporation"? Help!

Thank you! 

 

Step 1 - I never got any such notice, but that seems like the most likely explanation.

 

Step 2 - The 1120-S is full of stuff I didn't do, stuff related to unemployment, payroll - because I didn't think I was a corporation. I should leave all that blank? It seems like that's asking for trouble.

 

 

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