Discussion:Refund of Corp ES payment

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Discussion Forum Index --> Tax Questions --> Refund of Corp ES payment

Estock (talk|edits) said:

16 January 2007
I tried to find this quickly, but couldn't, in a search. Client was C Corp in 2005, now an S Corp. Had paid one quarterly payment to fed and state for 2006 before they applied for S Corp status. Do I:

-File 843 for the refund of estimated tax? -File 1120S, and request refund of tax after reporting the estimated tax on line 23a?

Of course, then the tax is not a deduction for the SCorp, because they will be refunded...

Deback (talk|edits) said:

January 17, 2007
Form 843 instructions state not to file that form for a refund of income tax, when you should use a different form. Will the C Corp be filing Form 1120 for a portion of 2006? If so, report the payment on that form and request the refund. If not, report the payment on Form 1120-S and request the refund.

Federal tax is never deductible, even if it isn't refunded.

Estock (talk|edits) said:

18 January 2007
gotcha - thanks! the corp is an s for the full year of 2006, so I will request a refund for the amount listed as a payment. i've never had to deal with a c corp that becomes an s with outstanding estimated payments - or a c corp that even had to file estimated payments, so I wasn't sure of the deductibility.

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