Single member LLC - S corp status revocation

5 replies
431 views

I have a single-member llc that elected S-corporation status. I need to revoke the S-corp election and be treated as a disregarded entity (Schedule C) going forward, effective January 1, 2026.

I am trying to e-file Form 1120-S using TurboTax Business (desktop version), but I cannot find an option to attach Form 8832. Does this mean Form 8832 must be filed manually? If so, can I e-file Form 1120-S first and, once it is accepted, mail Form 8832 separately?

In addition, do I need to mark the return as a “Final return” on Form 1120-S? Form 8832 specifies the new entity classification after revoking S-corp status, so I am unsure whether the “Final return” box should be selected on Form 1120-S. If yes, how do I do this in TurboTax Business?

On page 1 of Form 1120-S, Section H includes several checkboxes (Final return, Name change, Address change, Amended return, S election termination). In my case, should I select “Final return” or “S election termination,” and how is this handled within the TurboTax Business software?

TurboTax Business Windows

M-MTax

Level 15

You should indicate that the return is final and note the following from the IRS web site:

https://www.irs.gov/forms-pubs/revoking-a-subchapter-s-election

user17690078874Author

Level 2

how do you indicate it? Through 1120 S or form 8832 or the statement of revocation letter?

M-MTax

Level 15

File the statement and the form (attach a copy to the return and send a separate copy to the address listed in the instructions). Also, indicate that the return is final.

M-MTax

Level 15

Also, see the instructions for Form 8832:

https://www.irs.gov/pub/irs-pdf/f8832.pdf

File Form 8832 with the Internal Revenue Service Center for your state listed later.
In addition, attach a copy of Form 8832 to the entity’s federal tax or information return for the tax year of the election.

AmeliesUncle

Level 15

You only need to file Form 8832 to become a disregarded entity. There is no "revocation" needed.

Double check that you are eligible to make the election to become a disregarded entity. Your S-election would have needed to either be 60 months ago or was effective on the date the LLC was formed.