Form 2553 asks for the year end that will be used by the S corporation, which is usually December 31. It also asks for the effective date of the S status. This effective date has to be the beginning of the year that exists at the time of the election. Since the C corporation has a year beginning October 1st, this is the effective date of the S status. Therefore the short year from October 1st to December 31st will be the first S corporation status year.
A C corporation with a fiscal year ending September 30th is going to make an S election. The S corporation will have a calendar year end. What is the status of the short-year return, C or S?
Modified on: Sun, 5 Feb, 2017 at 9:07 PM
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