Federal & MA S corp short year final tax return on 2022 forms

Forum|Forum|2 years ago
June 19, 2023
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How can I efile federal & MA S corp short final year final tax returns for 1/1/23 - 5/31/23? Those have to be filed on 2022 forms as 2023 forms are not yet available. I paid for & downloaded 2022 federal & MA S corp only to find out at the end of all input that anything with a 2023 start date does not work. Please advise - looking for a refund if no ability to efile for a 1/1/23 - 5/31/23 short, final year - due 8/31/23. I printed out a screen shot of this message for reference. Please let me hear from you.

TurboTax Business Windows

Best answer by Rick19744

A few comments:

The short period return is due 8/15/2023; 2 1/2 months after the close of the business.
As you indicated, the 2023 forms, software, etc. are not available at this time. This is the case for anyone needing to file a short period tax return regardless of the size of the business.
What happens in this case, is you complete the returns on the 2022 forms and print the return. Once completed and printed out, you go through each page and cross-out 2022 and mark it 2023.
You will then have to paper file the tax returns; no efile is available. This is not a TT issue. The IRS is not set up to accept 2023 efiled tax returns until late January 2024 at the earliest.
The software can still be used and it is better than having to complete the returns by hand. This, of course, depends on the activity during the short period.
An option is to file an extension in August which will take you to February of 2024. Software may be available at that point in time.
Also keep in mind, if you have any liquidating distributions from the S corporation, those need to be reported on form 1099-DIV and not the 1120-S.
Don't forget to circle with the Secretary of State for which the S corporation was formed. There may be some administrative forms that need to be completed as well.

Rick19744Answer

Employee

A few comments:

The short period return is due 8/15/2023; 2 1/2 months after the close of the business.
As you indicated, the 2023 forms, software, etc. are not available at this time. This is the case for anyone needing to file a short period tax return regardless of the size of the business.
What happens in this case, is you complete the returns on the 2022 forms and print the return. Once completed and printed out, you go through each page and cross-out 2022 and mark it 2023.
You will then have to paper file the tax returns; no efile is available. This is not a TT issue. The IRS is not set up to accept 2023 efiled tax returns until late January 2024 at the earliest.
The software can still be used and it is better than having to complete the returns by hand. This, of course, depends on the activity during the short period.
An option is to file an extension in August which will take you to February of 2024. Software may be available at that point in time.
Also keep in mind, if you have any liquidating distributions from the S corporation, those need to be reported on form 1099-DIV and not the 1120-S.
Don't forget to circle with the Secretary of State for which the S corporation was formed. There may be some administrative forms that need to be completed as well.

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.

Critter-3

One more thing ... if you used the 2022 program to complete a 2022 return you MUST start a new file for the 2023 return and enter everything fresh ... you will NOT be able to transfer the 2022 info into the mock 2023 return. I highly recommend you file the extension and wait for the 2023 program to be available in January OR wait until 12/31 to formally close the business even if you stop working it in May. Keeping the business checking account open a while after the operation ceases is always wise as there always seems to be some item or income/expense that shows up late.

Mike9241

an extension to be able to use the 2023 program may not be practical. the extended return would be due 2/15/2024. don't know if Turbotax would have all necessary updates ready by then. then there's the cost of the program.

it really depends on how complicated it would be to prepare the return using the 2022 program and mailing it use a tracking method.