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gurnor28
New Member

I have s-corp but for last 3 years i been filing form 1040 instead of 1120s. What should i do now? Should i file 1120s for 2015 tax year? And leave last 3 years as it is?

I have S-Corp for last 8 years. First few years i used professional and all went fine he filed 1120s and 1040 for me. But last 3 years i did it myself and did a huge mistake i did not file 1120s and filed only 1040 as sole proprietor. Even though i am only employee in my s-corp but was reading that i needed to file 1120s anyways. Can someone please suggest what to do? I still have to file 2015 taxes should i file them as 1120s?

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2 Replies
SusanH
New Member

I have s-corp but for last 3 years i been filing form 1040 instead of 1120s. What should i do now? Should i file 1120s for 2015 tax year? And leave last 3 years as it is?

That depends on how you've been paying yourself.

When you "work" for an S-Corp, you are an employee and the S-Corp should be paying you a wage appropriate for the work you do. This means that the corporation pays the employer portion (1/2) of your Social Security and Medicare when processing the payroll, you get a W-2 for the wages you are paid and when the S-Corp files it's tax return, you are issued a K-1 with your owner's share of the net income reported to the IRS.

If you have not been paying yourself a wage from the S-Corp either in 2015 or in prior years, then you don't necessarily have to file prior year S-Corp returns and amend your personal returns. That's because when you file a Schedule C, you, the individual, pays all of the self-employment tax that is due on the net income. You should not, however, use your EIN from your S-Corp when filing a Schedule C with your personal return.

If you have been paying yourself as an employee and withholding taxes as appropriate, you may be paying more Social Security and Medicare Tax than you should by completing a Schedule C depending on how you have been reporting things.

So basically, it's okay to file as a Schedule C with your personal return but you should not use your S-Corp EIN on the Schedule C or have payments issued to you with that number. 

dougrivas
New Member

I have s-corp but for last 3 years i been filing form 1040 instead of 1120s. What should i do now? Should i file 1120s for 2015 tax year? And leave last 3 years as it is?

I'm in the same situation. Thought I purchased the business package but can find no records of my form 1120S for my S-corp. I know I paid my taxes with the IRS for my S-Corp but I can't find a record they ever received the form 1120s...is this something turbotax does automatically? All my returns have been accepted and I have audit defense but want to be 100% I am compliant

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