I truly do NOT want to overcomplicate my response, and thus, for further details, you may check the links I will post below. Nonetheless, I will provide clear-cut concise answers:
1. If you want to revoke an S-Corporation, effective NEXT TAX YEAR (meaning starting on January 1st), the revocation form (IRS Form 2553) and all other necessary documents must be submitted before or on March 15th of the NEXT Tax Year.
2. For example, if you want to revoke your S-Corporation this year starting October 1st, the revocation form (IRS Form 2553) and all other necessary documents must be submitted before or on October1st of this Tax Year. of the NEXT Tax Year.
3. You are required, by law, to file an S-Corporation Tax Return for the time period that the S-Corporation was considered effective by the IRS EVEN IF THERE WERE NO ACTIVITY.
A domestic corporation must file Form 1120, U.S. Corporation Income Tax Return, whether it has taxable income or not.
4. A Zero Activity S-Corporation is NOT required to pay Reasonable Compensation but the IRS can only know that if you actually file the Tax Return showing NO ACTIVITY.
Revoking a Subchapter S election
Wage Compensation for S Corporation Officers
