NYS/NYC CORP TAX PREPARERS

[DEO]

All necessary papers were forwarded to the IRS and NYS to change Corp tax filings from C-Corp. to S-Corp.

However, the IRS received their form late, so that the change over will be effected from 01/01/17, whereas NYS has accepted and their change over to S-Corp is effected 01/01/16.

My question is regarding NYC General Corp. Tax, who does NYC follow, the IRS or NYS.

Thanks for any help

Deo

 

[Evan S. Golar]

How is it that you received the NYS approval prior to Federal? That sounds strange.

Anyway - NYC does not recognize S Corp status, so ALL corporations - S or C - pay tax on the same form - even if S Corp is approved for Federal and NYS.

[michaelmars]

above is not correct,  NYC used 2 different forms.  If the entity is a "C" corp it goes on NYC-2.  If its an "S" corp it goes on NYC-L.

Did you contact the IRS?  I have had good experience with getting them to reclassify from a C to an S even if late.  I know they have an automatic procedure for late elections but I think that's only for 1st year filers and you didn't say if that is the case with this client.

[DEO]

It was exceedingly too late, to contact the IRS.

I did some research, and file the NYC Corp tax as a C. My understanding is that NYC follows the IRS and a copy of the Federal form has to be attached to NYC return. So I did use the NYC-2 form.

My only problem was that the info on the Federal 1120 does not all flow to the NYS CT-3S, it had to be manually entered.

Thanks again