S-Corp Final Return Timing

[jrod4]

I elected S-corp status effective 1/1/2022 and no longer had business activity after 10/31/2022. I filed the dissolution with my state on 3/14/2023. Should I file a final return as of 10/31/2022, 12/31/2022 or do I have to wait until filing for 2023 for a short year ending 3/14/2023 with no activity? Thank you!!

[MinhT1 · Accepted solution]

Your S-corp has been dissolved and has ceased to exist on 03/14/2023. You should file a final 1120S return for the period from 01/01/2023 to 03/14/2023. The filing due date of the final return is the fifteenth day of the third month following the entity's termination. So in your case, it is due on 06/15/2023.

You must file Form 966, Corporate Dissolution or Liquidation, if you adopt a resolution or plan to dissolve the corporation or liquidate any of its stock.

For tax year 2022, you will file a tax return for the full year.

Please read this IRS document for more information.

[Mike9241]

I'm not sure that you can use the 2022 business Turbotax to do the 2023 return with that those final year dates.   

a way around this is to create a second return and enter the 2023 data as if it was 2022. then print it out and change the dates at the top to the 2023 dates. you won't be able to e-file 

[jrod4]

Thank you so much! Would I have to include the short year 1/1/2023-3/14/2023 K-1's on the individuals 2022 tax returns since they are on 2022 forms, or wait until 2023? The K-1's for 1/1/23-3/14/23 have no activity, but are marked as Final K-1's.

[PatriciaV]

No. Wait to report 2023 activity on the 2023 Schedules K-1. You are required to provide final K-1s to the partners even if you have no activity to report. We suggest you wait until the forms are available for tax year 2023 to avoid confusion. You'll be able to find these forms on the IRS website possibly as early as October 2023, but more likely in December. You can complete them by hand and file by mail.