Hello everyone,
A friend of mine has a Multi Member LLC that has been getting taxed as a Partnership (Form 1065) for 2022-2024 and as a Pass-Through Entity at the State level. They submitted a Form 2553 in early 2025, claiming REV PROC 2013-30 late filing relief, to be treated as an S Corp effective 1/1/2025. They received an IRS letter in June 2025 stating the S Corp election was accepted effective 1/1/2025 and that no other actions need to be taken. It doesn't say that they need to file a FINAL Form 1065 for the Partnership, it only goes on to remind them to pay a reasonable salary to all shareholder-employees in 2025.
Are they able to simply file a Form 1120S (same Name and EIN) for 2025 in place of the Form 1065 and just copy over the 12/31/2024 Balance Sheet and continue 2025 as if nothing has changed other than the form they are filing, and the Shareholder Salaries of course? They have a small amount of assets, partially depreciated, but no debt.
Or do they have to Amend their 12/31/2024 Form 1065 as FINAL and sale the assets at Book Value to the S Corp? Any help would be greatly appreciated!
