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My latest issue is a question regarding the IRS treatment of our now dissolved S Corp. We earned our last income from this S Corp in May of 2012, however did not officially dissolve the company until 12/2012. I applied for the automatic extension via form 7004 because I figured we would need the time. I put May 2013 as last month of income on the extension as the year end. Evidently, now the IRS is saying that our tax return for the S Corp was due then and they are trying to charge us a late filing penalty, even though we have filed the return, and we filed it 4/14/13, which is months before the extended 9/15/13 due date. Since we did not dissolve this company until December, wouldn't our tax return be due at the normal times. We were a cash basis calendar year S Corp. Please clarify this issue, as they are saying we owe them over $3,000 for penalties on our 2012 tax return.
ANSWER
The BIDaWIZ Team's Answer:
Filing another form 7004 is irrelevant at this point. It is best to actually first call the IRS and explain the situation with all of the facts and circumstances and how the year end date on the form 7004 was incorrect, and all other tax return and dissolution documents support the year end date of 12/31. Request for an abatement based on the clerical error on the form 7004 and reference the S Corporations historical good standing with the IRS. If there's no resolution with a phone call, you can write the IRS a letter.
