I agree with @Mike9241 in that you need to have a one on one consultation with a tax professional.
You do have several issues that need to be understood. A few comments:
- It's not clear on what "last year" means.
- Does that mean you filed a 1065 for 2020 and you elected to be taxed as an S corp for 2021?
- Or does that mean that you filed a 1065 for 2021 and elected to be taxed as an S corp for 2022?
- If you made an S election, then you are an S corp until the election is terminated.
- You should not file an 1120-S return until you have received confirmation from the IRS that the S election has been accepted. Once again not clear on when elected.
- If the S election has been accepted, in order to return to be taxed as an LLC (partnership form 1065), you would need to liquidate the S corp. This means that all property is deemed to be sold at FMV and tax would need to be paid in the current year as any gain would be reported on the final 1120-S and applicable shareholder K-1.
- The S corp will require reasonable wages be paid which will require payroll tax filings.
Needless to say, all of the issues are best done face to face as this forum is not conducive to providing assistance to numerous issues and inter-related issues.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
