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Filling out IRS Form 8832: An Easy-to-Follow Guide - YouTube YouTube Start of suggested clip End of suggested clip If you correctly fill out and submit form 8832. You can elect for the LLC to be treated as ACMoreIf you correctly fill out and submit form 8832. You can elect for the LLC to be treated as AC corporation. For federal tax purposes. And the business will pay a corporate income tax.
The IRS recommends that an S Corporation shareholder complete Form 7203 every year and maintain the form in their tax records even in years where none of the above apply.
Failing to include Form 7203 on a tax return in future years may result in the IRS disallowing any losses reported on the Schedule K-1 (Form 1120-S) or subject the taxpayer to a request for the form.
In order to become an S corporation, the corporation must submit Form 2553, Election by a Small Business Corporation signed by all the shareholders. See the Instructions for Form 2553PDF for all required information and to determine where to file the form.
Form 7203 is required when a shareholder of an S corporation sells shares, receives a payout, or receives a loan repayment from the company. Additionally, the IRS recommends you complete and save this form in years where none of the above apply, to better establish an S corporation stock basis.