EFE :Problems for S Corp - Urgent Please help

V

vision2001

Registered Users (C)
RFE :problems for S Corp - Urgent Please help

Hi

I opened a S Corp on EAD and filed my 2002 returns on the same. I have now got a RFE and they are asking for 1040 forms for 2000,2001,2002. The 2002 return is the 1120S form .

What complications can arise from BCIS point of view for this 2002 1120S form?
My CPA says that it should have no bearing on decision of BCIS for I485.

I am confused and shit scared as I do not want to loose my GC.

Thanks and please do reply if you have a answer either positive or negative.
 
Last edited by a moderator:
vision2001,

your accountant is most likely correct - INS won't give a damn if you own an S-type corporation (aside the fact that they won't admit your 1120S forms as an acceptable form of tax return). But they will report it to IRS and that's when the fun starts! U.S. Citizens and Legal Permanent Residents (Green Card holders) only can file for a subchapter S corporation. Apparently, you are in violation of the law...
 
S Corrp

Did you file a K1 along with your Tax return. For S-Corp you should have a K1 instead of 1090. Many CPA's say that it is ok to have S-Corp as long as you have a SSN. But the opinion varies. Did you declare in your K1 as active or passive.
 
Where is this information Bitterman

that Permanent Residents or Citizens can only open S Corporation.

I looked at the IRS website and could not find it in the instruction form.

Thanks for your response,
 
I filed a K1 as told to me by my CPA

he said it is active and it would not matter as long as there is no income on S corp. Losses are fine as it is an intent to start a business.

Looks like I am F**ked .

Anyway Concord thanks for your reply and what is hell is 1090 now?
 
Accept Mail from IRS

Did IRS accept your S-Corp status through mail. 1090 is used to declare profits in you tax return. This is issues by the corporation where you have shares.

If you did not then you can refile(1020) your corporation taxes saying that you used the wrong forms(1020S). And issue a 1090 for the profits which you can use to refile your personal taxes.

INS reporting to IRS will only make your Corporation status to be removed from S. If your salary from your main job is > 80K then there is not benefit having S corp. You need to pay Emp tax only for the first 80K of your income.
 
Opening S Corporation With EAD

BitterMan,

You can very well have a S- CORP with EAD.
It says RESIDENT not PERMANENT RESIDENT.

vision2001,

Do not worry. You will be fine.

Here is the link to IRS site and the FAQ.

http://www.irs.gov/faqs/page/0,,id=15916,00.html

=======================
I have a C corporation. What is the procedure to change it to an S corporation?

To convert from a C corporation to an S corporation, you must meet the same requirements as a newly formed corporation electing S corporation status. You must meet the requirements of a "small business corporation" which are, in general:

1. Be a domestic corporation organized under the law of any state or U.S. territory;
2. Have only individuals, estates or certain trust as shareholders (no partnerships or corporations as shareholders;
3. Have only citizens or residents of the United States as shareholders;
4. Have only one class of stock (differences in voting rights are OK)

The S corporation can have no more than 75 shareholders and must make the election to be an S corporation on Form 2553 (PDF), Election by a Small Business Corporation, before the 16th day of the third month following the close of the C corporation's tax year if the election is to be effective for the current tax year. The C corporation must qualify as an eligible corporation during those 2 1/2 months and all shareholders during those 2 1/2 months must consent, even if they do not own stock at the time of the election. If the election is filed after the 15th day of the third month of the tax year, the election will be in effect for the next tax year and all shareholders at the time of the election must consent.
================
 
By the way when did you receive the RFE ?

vision2001,

By the way when did you receive the RFE ?
I guess now-a-days they are not asking for TAX Returns
 
vision2001, needneed, and ConcordMan:

All right, so it says: "4. It [the corporation] has no nonresident alien shareholders".

Firstly, we are NOT resident aliens, all right? No matter how hard you want it, it is not going to happen just because you want it.

Secondly, every site on the internet which explains stuff about corporations (such as http://www.incorporate.com) will tell you that all shareholders (owners) of an S-type corporation must be either U.S. Citizens or U.S. Legal Permanent Residents (Green Card holders).

And the last, but not least, a corporate lawyer told me exactly the same thing when I was researching possibilities to form my own business. Did you guys ever talked to a corporate lawyer at all?
 
Answers:

needneed :: The RFE got to my lawyer on July 2nd and it was issued on June 17th as per BCIS web site. Thanks for your reassurance.


ConcordMan :: Yes the IRS accepted it thru mail and my Income was > 80 K from my GC sponsoring employer. Also I am with the same employer and there are only losses on the S Corp. I have no other income or loss head other than my employer and my S Corp. Thanks for your reply.

Anyway when I talked to my lawyer and my CPA whoc is also a Corporate lawyer he said as long as there are losses it is fine because you did not derive any profit from it. Also using EAD to open a company C Corp or S Corp it is still a gray area where the BCIS and the IRS rules are not clearly defined.I will keep my fingers crossed.

Bitterman thanks for your honest reply and I appreciate it.

I will keep you updated on this issue. meanwhile if anyone gets anything please update us all.

Thanks again,
 
You must log in or register to reply here.
Top