NASSAUSUFFOLK

A PC c-corp does not check the box that they are a personal service corp and does not compute the tax at the higher tax rates, but computes it at the regular corp tax rates.

 

Are they still under the 3 year statue for the IRS to recompute taxes? Or because they never told the IRS (except by the letters PC in the name) that they were a personal serv corp would that change the statue, possibly 7 years? The income is not misstated but the tax is misstated by well over the 25% mark.  Or does not checking the box actually make this an incomplete return and no statue ever started?

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Kenneth Hauptman
Wild, Maney & Resnick, LLP
Woodbury NY
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Ken: Unless they can prove it was willful, I don't think the 6 year statute would apply. Robert ------------------------------------------- Robert Brown ROBERT N. BROWN, CPA Jericho NY -------------------------------------------
Original Message: Sent: 05-02-2014 16:39 From: Kenneth Hauptman Subject: pc c corp A PC c-corp does not check the box that they are a personal service corp and does not compute the tax at the higher tax rates, but computes it at the regular corp tax rates. Are they still under the 3 year statue for the IRS to recompute taxes? Or because they never told the IRS (except by the letters PC in the name) that they were a personal serv corp would that change the statue, possibly 7 years? The income is not misstated but the tax is misstated by well over the 25% mark. Or does not checking the box actually make this an incomplete return and no statue ever started? ------------------------------------------- Kenneth Hauptman Wild, Maney & Resnick, LLP Woodbury NY -------------------------------------------