Modify tax-return from S-Corp to C-Corp

Forum|Forum|5 years ago
March 3, 2021
1 reply
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Hi team,

Yesterday I filed the tax return electronically for my company Exxgro Inc. as S-Corporation using form 1120S. I received the rejection with reason return header mismatch.

I checked with my lawyer who filed the tax return last year and he mentioned I should have filed the tax return as C-Corp using form 1120.

Can you please advise how can I correct this and transformation from S-Corp to C-Corp?

Regards,

Shariq

[phone number removed]

TurboTax Business Windows

ColeenD3

Level 15

Do you actually have a C Corp but just thought you had an S Corp?

Did you convert a C Corp to an S Corp and then realize that you don't qualify?

To qualify for S corporation status, the corporation must meet the following requirements:

Be a domestic corporation
Have only allowable shareholders
- May be individuals, certain trusts, and estates and
- May not be partnerships, corporations or non-resident alien shareholders
Have no more than 100 shareholders
Have only one class of stock
Not be an ineligible corporation (i.e. certain financial institutions, insurance companies, and domestic international sales corporations).

Please see this LINK for more information.

exxgroincAuthor

Level 2

Hi Coleen,

Actually I have a C-Corp. By mistake I filed S-Corp 1120S form for tax return.

I actually need to file form 1120.

Is there a way with turbotax that I don't have to pay again for the 1120?

Please advise. I would be grateful.

Sincerely,

Shariq

VolvoGirl

Level 15

You have the Desktop Business program. It does all the returns. Just start a new return. Go up to File-New and pick the right one. If you have to do a state return you might have to buy the state program.