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  • 1.  How do I avail a client of the IRS Voluntary Disclosure

    Bronze Most Valuable Member
    Posted 11-21-2016 01:44 PM

    I have a client coming in who has not filed a 2014 (initial year) and 2015 Sub-S return nor 1040's.  What is the procedure and/or form # for submission.

    Thanks in Advance

    Alan Aron

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    Alan Aron
    ALAN ARON, CPA PC
    MELVILLE NY
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  • 2.  RE: How do I avail a client of the IRS Voluntary Disclosure

    Platinum Most Valuable Member
    Posted 11-22-2016 12:54 AM

    Did you or the client file Federal 2553 and (I presume) NYS CT-6 application for S Corp Status when the corporation was formed and commenced operations?

    I do not believe there is a "voluntary disclosure" program available for Federal tax purposes, but you probably are eligible to file both the corporate and personal returns under separate voluntary disclosure applications.  You might even get the S Corporate status approved via the NYS voluntary disclosure program.  Apply now because the state has about a six month backlog on approving requests.

    This is something you might have been able to bring last week at the LI Tax Practitioner's Symposium where both IRS and NYS had problem resolution personnel who were in contact with both (IRS) Holtsville and (NYS)Albany and at least get pointed in the correct direction!

    Good luck!

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    David Rothfeld
    DAVID J. ROTHFELD, CPA
    Hicksville NY
    516-433-2129



  • 3.  RE: How do I avail a client of the IRS Voluntary Disclosure

    Platinum Most Valuable Member
    Posted 11-22-2016 07:30 AM

    There is a Fed Voluntary disclosure program. I am not familiar with it.... but all of our tax attorneys  in our organization are.  It usually requires 5 yrs....this, perhaps others will comment on .

     

     

    As far as the late election of the Sub S, you should be ok.....

    NYS will allow and follow what the Feds do.

     

    We have done this many times. We file the Corp return with the 2553. All software accommodates this and is e-fillable.

    We specifically state that you are filing under Rev Pro 2013-30... and in it we put in the reason the following:

    Statement to be attached to late filed for 2553

     

    Relief is requested for late filing of form 2553 under Rev. Pro. 2013 - 30

    The taxpayer is requesting r relief for late filing of form 2553. The error causing the non filing of the election was inadvertent. The taxpayer was wrongly advised that classification would be made at the time of filing the rerun corporate return..

    " alternative wording "    did not realize that filing this was election was due earlier.  Or that thee was a separate election to be filed.

    The requesting entity represents as required under Rev Proc 2013-30 that:

    • This statement is made under the penalties of perjury, and
    • The Requesting entity is an eligible entity as defined in §301.7701-3(a) and
    • The requesting entity intended to be classified as an S corporation.as of the electing date and
    • The requesting entity fails to qualify as an S corporation solely because the S corporation election was not timely filed pursuant to § 1362(b)  and
    • The requesting Entity timely filed all required federal tax returns consistent with its intended classification to be taxed as an S corporation.

     

    Additionally, the taxpayer filed their 2015 1040  return showing the flow through of income from the 1120 S

     

    The key here is that the taxpayer has not filed his 1040.  So then you will file the 1040 as if the Corp is an "S"

     

     

    We have NEVER had something kicked back at us.

     

     

    Abby Alhante,  CPA

     

    Kurcias  & Alhante, LLC  CPAs

    525 Broadhollow Road   Suite 104

    Melville NY  11747

    516.829-5890  Fax 516-829-3976

    Mobile 516-381-9301

    AbbyA@calldcap.com

    ( E mail response preferred )

    (Please consider the environment before  printing this email) 

     






  • 4.  RE: How do I avail a client of the IRS Voluntary Disclosure

    Bronze Most Valuable Member
    Posted 11-23-2016 10:08 AM

    IRS provides relief for a late S election in Rev. Proc. 2003-43 and Rev. Proc. 97-48



    Sent from Outlook






  • 5.  RE: How do I avail a client of the IRS Voluntary Disclosure

    Platinum Most Valuable Member
    Posted 11-22-2016 10:15 AM

    Alan:

    Assuming there were no S elections filed, New York State does not follow Rev. Proc. 2013-30, so it would be a C Corp for NYS.

    You should submit a request under the New York State Voluntary Disclosure program.

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    Robert Brown
    ROBERT N. BROWN, CPA
    Jericho NY



  • 6.  RE: How do I avail a client of the IRS Voluntary Disclosure

    Platinum Most Valuable Member
    Posted 11-22-2016 10:30 AM

    I would not take that view. Although they do not follow that REV PROC per se, I have on more then several occasions got the state to back date an election, provided the Feds have.

    So I still would follow my prior path.

     

    Happy holiday to all.

     

     

    Abby Alhante,  CPA

     

    Kurcias  & Alhante, LLC  CPAs

    525 Broadhollow Road   Suite 104

    Melville NY  11747

    516.829-5890  Fax 516-829-3976

    Mobile 516-381-9301

    AbbyA@calldcap.com

    ( E mail response preferred )

    (Please consider the environment before  printing this email) 

     






  • 7.  RE: How do I avail a client of the IRS Voluntary Disclosure

    Platinum Most Valuable Member
    Posted 11-22-2016 10:42 AM

    Abby:

    There is nothing authoritative that Alan can hang his hat on.

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    Robert Brown
    ROBERT N. BROWN, CPA
    Jericho NY



Discussion Disclaimer

The opinions expressed are the views of the author alone and should not be attributed to any other individual or entity and shall not constitute an accounting opinion.