To revoke a Subchapter S election/small business election that was made on Form 2553, submit a statement of revocation to the service center where you file your annual return. The statement should state: The corporation revokes the election made under Section 1362(a) The S corporation’s EIN.

How do you cancel an S corporation?

Closing an S Corp.

1. Wind up your business. Wrap up any existing contracts and pay any debts your corporation may have to wind up your business’s affairs.
2. Dissolve the S corp. Dissolve your S corp.
3. File the required forms with the IRS.

How long does it take for IRS to revoke a LLC?

After the IRS revokes your LLC’s S-Corporation Election and reverts your LLC back to its default tax classification, they will mail a Confirmation Letter to your LLC’s mailing address (the address that you use in the letter). Please allow 45-60 days before your Confirmation Letter arrives. 5-Year Waiting Period for S-Corporation Election again

How can I Revoke my S corporation status?

The IRS doesn’t have a specific form to download on their website if your LLC wants to revoke its S-Corporation status. Instead, you need to mail 3 items to the IRS, which together, “put the IRS on notice” that your LLC is revoking its S-Corporation status.

What happens when a LLC elects s Corp status?

S Corp Election. When an LLC elects S corp status, all of its liabilities and assets are exchanged for stock in the new corporation, which is then liquidated and distributed to its owners. This transfer is not taxable as long as the LLC’s debts do not exceed its assets.

When to file Form 8832 for revocation of S Corp?

You are not limited by the 60-month rule because you meet one of the two exceptions (you made the S-Corp election at the time the LLC was formed). The filing of the 2019 1120-S and the 2020 1120-S (marked final) doesn’t impact your ability to file Form 8832 along with your S-Corp revocation.