Horrible Mistake, dont know what I can do - S corp revoked

[Robert Lee]

Jurisdiction

US Federal Law

I was operating a disregarded entity up until 2018, an llc. Being in real estate, buy sell, hold and rental, I asked my accountant to select an s-corp election to properly handle the short term properties. He filed the docs, The 2 years that followed, he did nothing with the s-corp benefits and said it was not need for him to properly do my taxes. I said, well I don't want to pay for a needless tax return, can we go back to the way it was. He said he could revoke the s corp election.

The year that followed he returned to doing my taxes, as a disregarded entity, llc.

Last week I got a letter in the mail, IRS. We now recognize you a a c corp. I began looking at what this means and how it came to be. What a disaster. My 10 year accountant did not respond to me today, even thought I made several attempts and stressed the urgency.

Can I get back to an S-corp status. I had no idea, nor did my advisor, this would happen. I will be out so much in taxes given I have many long term rentals currently held inside this C-corp


I greatly appreciate anyone who can help

 

[justblue]

@Tax Counsel

 

[army judge]

I greatly appreciate anyone who can help

You need to hire yourself an attorney who specializes in federal taxes and tries IRS related cases.

The help you require is far beyond the scope of a free discussion site.

 

[Tax Counsel]

I greatly appreciate anyone who can help

I suggest you see a Colorado tax attorney. It'd be important to look at all the correspondence and other communications you and your accountant had to figure out what options you've got at this point. In particular it is not clear how you ended up a C corporation when supposedly you filed for S-corporation status. The reason for that would be significant here.

 

[Robert Lee]

I have talked to 4 accountants and 2 irs attorneys. Tying to see if any see a path forward. Funny, the accountants seem far more optimistic about getting a revoked Scorp elect overturned.

Crazy I could be out years of income level $$$ because my accountant did not know I would become a c corp once the scorp elect was removed. Conceivably years of my life gone, from a pecuniary perspective that is.

I had the ideas of selling my long term assets slowly over time, enjoying low tax rate treatment. First $80k tax free on long term gains. The properties were essentially part of my retirement. Gone.

To all. Be very very careful who you rely on because at the end of the day it all falls on you.
Thanks to those who replied.