TACPA Forum

I recently asked an IRS AUDITOR this question. I was told that 1) the EIN remains active. IRS does not cancel or reissue to another tax payer. 2) that I could INDEED use the same S Corp.

I do not have this in writing. I HAVE done this myself with one of my dormant S Corps. However, because the penalties are so stiff, I would re-apply for the S Election and attach copy to the return with an explanation that the corp was dormant and now you are re-activating it. That is what I did about 10 years ago without any issues.

MAYBE hire a tax attorney for a CYA letter?

Possibility of S-Corp non-filing/late filing Penalties and Interest for years 2016, 2017 2018 and 2019. 

Scenario sole owner:

Sub S corporation filed a final return to IRS in 2015.

The corporation still open and files franchise tax for State.

The client has a new venture and would like to use the corporation and the same FID# for IRS filing.

Question:

1. Can the client  use the same corporation with FID#? If so would this be filed as an initial return?

2. Will the corporation retain its Sub S designation as before?