Sole Prop to S- Corp retroactively to start of jan 2022

[RetireAt65]

I sole prop, and have already received a payment for work after Jan 1, 2022. Can i still convert to S- Corp and back date conversion to Jan 1?

[DianeW777]

Yes.  When you choose to change from from a sole proprietor to an S corporation you can also choose the date to begin your tax year, usually a calendar year unless otherwise specified. See the information in the link below for electing S corporation status.

• IRS S Corporations

The owner must first form either an LLC or a C corporation and then select S corporation status with the Internal Revenue Service (IRS).

• Form 1128: To request a ruling to adopt, change, or retain a tax year, file Form 1128 by the due date (not including extensions) of the federal income tax return for the first effective year. Do not file earlier than the day following the end of the first effective year. In the case of a change in tax year, the first effective year is the short period required to effect the change.