Final return - short tax year - forms???

[Samantha]

This may seem like a simple question but it still has me a little baffled: the short tax year, necessitated by the corporation's final year with a dissolution before 12/31. The due date rule is the 3 months + 15 days after year-end. So.....if tax forms don't come out til late Jan of the following year (Jan 2023 for 2022 tax forms) and an S corp return is due, say 7/15/22....how does one file exactly??

[jklcpa]

C corp returns are due the 15th day of the 4th month after year and.

S corp 1120S returns are due the  15th day of the 3rd month after the corporate year end.

[jklcpa]

For a short year final corporate return, you have 2 choices:

1. File an extension and hope that the next year's forms are released before the extended date comes due, or

2.  Use the latest forms available which will be 2021, print them out, and modify the date indicated in the corner of the form by hand and file on paper.

[Randall]

I think you can efile the short form.  If you use the same year software (previous calendar year), you'll have two returns in the same year.  But if you call ATX (or your software company) and tell them about the short year, they can open a 'back door' so you can efile the return.

 

[Abby Normal]

Why does no one know how to do short year rollovers in ATX?

Here are my notes:

1) Go to Rollover Manager and click on the Last Month/Quarter tab.

2) Select the return.

3) Click Rollover.

4) Once you go back to the Return Manager, the return will contain (Rolled Over) in the Name.

The return will roll over the data as if you were rolling over from the prior year.

 

[Samantha]

These answers are all so helpful and - together - give me the info I need!! Thank you!! It's an S corp. I have been so confused about how to file the short year since forms don't come out so the paper file option makes sense although it's my least favorite considering mail is sitting unopened in trucks parked outside IRS. Great info on that rollover option - I'll try that!! And if I can't I'll call about the backdoor option. Thank you everyone!!

[Abby Normal]

2 hours ago, Samantha said:

These answers are all so helpful and - together - give me the info I need!! Thank you!! It's an S corp. I have been so confused about how to file the short year since forms don't come out so the paper file option makes sense although it's my least favorite considering mail is sitting unopened in trucks parked outside IRS. Great info on that rollover option - I'll try that!! And if I can't I'll call about the backdoor option. Thank you everyone!!

Do NOT paper file it. Roll it over as I showed you and then efile it. I do this frequently.

[Abby Normal]

9 hours ago, Randall said:

I think you can efile the short form.  If you use the same year software (previous calendar year), you'll have two returns in the same year.  But if you call ATX (or your software company) and tell them about the short year, they can open a 'back door' so you can efile the return.

 

There's no need to call ATX. When you do the short year rollover, it can easily be efiled because it's a separate return, as it needs to be.

[Randall]

On 3/11/2022 at 3:21 PM, Abby Normal said:

There's no need to call ATX. When you do the short year rollover, it can easily be efiled because it's a separate return, as it needs to be.

Not sure what you're saying about the rollover.  Are you saying if you have the new forms and the new year ATX program and the client's short year is for that year, then I agree.  Since the last year filed would have been a full year (2020).  I was thinking about if the 2021 year is a full year and you want to file a short year for 2022, then you would already have done the rollover in the 2021 software and the 2022 forms and software would not be available.  Then you would have two returns in the same software year with the same tax id.  This is when I think you would need to call ATX.  Maybe the original poster was a situation where the rollover would work.

[Abby Normal]

When you go into the Rollover Manager and click on the Last Month/Quarter tab (probably named for payroll returns) you will see all returns in the CURRENT year software, not the prior year software.

Example: You did a full year 2021 business return. The business closed early in 2022. Even with extensions the 2022 forms will not be ready in time. So you go to Rollover Manager, select the Last Month/Quarter tab instead of the 2020 Returns tab, and you'll see the full year return you did for 2021. When you roll that over, all your 2022 short year beginning balances will match the 2021 ending balances. This is especially important for fixed assets ad any carryovers.

The rolled over return will have (Rolled Over) appended to the name. Open it and enter the 2022 short year dates on the main form, and do the 2022 return on the 2021 forms, and you can efile it just like any other return.

[Margaret CPA in OH]

Hmm, maybe this should be in the Tips and Tricks Pinned files.  Thanks, Abby Normal!  I no longer do business returns but this seems quite useful.

[Abby Normal]

12 minutes ago, Margaret CPA in OH said:

Hmm, maybe this should be in the Tips and Tricks Pinned files.  Thanks, Abby Normal!  I no longer do business returns but this seems quite useful.

You're right it should. I'll see if I can add it. If not I'll ask @jklcpa

[Randall]

Yes, thanks Abby.  I didn't know that.  Saves time calling ATX and all that.

[Abby Normal]

4 hours ago, Randall said:

Yes, thanks Abby.  I didn't know that.  Saves time calling ATX and all that.

Calling ATX when I was still a newbie is how I learned this. You would think there would be a knowledgebase article about it but I can't find one.

[Samantha]

This is truly great! Thanks again. Yes, I caught the key: select the Last Month/Quarter tab.