S-Corporation final tax returns partial year

[NathanW]

I have a Utah S-Corp that I dissolved in July 2020.  According to the website for the IRS, I am required to file a final tax return by the 15th day of the 3rd month after the corporation is dissolved.  TurboTax Business 2020 is not released yet and I already filed for 2019.  Do I use the 2019 software to submit another return with the final tax return option selected and specify the dates of 1/1/2020 through the date the corporation was dissolved?

[tagteam]

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@NathanW wrote:

Do I use the 2019 software to submit another return with the final tax return option selected and specify the dates of 1/1/2020 through the date the corporation was dissolved?

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Yes. You can use the 2019 Form 1120-S provided:

• The corporation has a tax year of less than 12 months that begins and ends in 2020, and

• The 2020 Form 1120-S isn't available at the time the corporation is required to file its return.

The corporation must show its 2020 tax year on the 2019 Form 1120-S and take into account any tax law changes that are effective for tax years beginning after December 31, 2019.

See https://www.irs.gov/instructions/i1120s#idm139641014941872

Note that you can use the 2019 version of TurboTax Business but you will have to print and mail the return (1120-S) since you will need to make manual alterations to the dates on some of the printed forms (including your K-1(s)).

NB: Make sure you have saved your previously filed 2019 return(s) on different media and/or use caution to ensure that you do not overwrite your 2019 return with the return you are preparing for the 2020 tax year.

[AmeliesUncle]

I highly recommend filing an extension and waiting until the 2020 software comes out.

As was mentioned above, if you were to use the 2019 software, you would need to override several things, including making it compliant with 2020 tax law (which is likely to change over the next few months).  So filing an extension and waiting for the 2020 software is a good idea.

[NathanW]

Thank you for your advice.  I have tried finding somewhere that I can e-file Form 7004 and I was told by a CPA that they don't have the forms available to do this since the 2019 deadline has passed.  Do you suggest I complete and mail Form 7004 to the IRS?

[AmeliesUncle]

Yes, I would file it by mail.

Because the IRS is still buried in mail due to COVID and things are therefore more likely to get misplaced, you may consider mailing it "Registered" mail, with "Return Receipt" requested to have proof that you mailed SOMETHING to the IRS around the due date.

[Anonymous]

YES YOU MUST FILE AN EXTENSION. failure will result in a late filing penalty of about $200/shareholder for each month or fraction thereof the return is file after its due date - 2 - 1/2 months after the short year end. make sure on the 7004 you indicate it is for a short year - reason final and the period - questions 5a and b on the form