77 S Corp Revocation Letter Sample: Your Guide to Saying Goodbye to S Corp Status

So, you're looking into how to officially un-elect your S corporation status, and you've landed on the need for an s corp revocation letter sample. It's totally understandable. Sometimes, a business grows or its goals change, and staying an S corp just doesn't make sense anymore. This article is here to walk you through what you need to know about crafting that important letter, making the process as smooth as possible.

Understanding Your S Corp Revocation Letter

An s corp revocation letter is basically your formal notification to the IRS that you no longer want your business to be taxed as an S corporation. It's a crucial document that officially signals the end of your S corp election. This letter is incredibly important because it legally changes your business's tax classification.

Think of it like this: when you first became an S corp, you sent a form to the IRS saying, "Hey, we want to be taxed this way." This revocation letter is the opposite; it's you saying, "We've decided we want to change how we're taxed."

Here's a breakdown of what typically goes into a revocation letter:

• Business Name
• Employer Identification Number (EIN)
• The date you want the revocation to be effective
• A clear statement that you are revoking the S corp election
• Signature of an authorized person

Sometimes, you might also need to include a reason for the revocation, especially if it's not a voluntary decision. Keep this letter, and the IRS's confirmation, for your business records.

S Corp Revocation Letter Sample: Voluntary Revocation

1. Business Name: ABC Widgets, Inc.
2. EIN: 12-3456789
3. Address: 123 Main Street, Anytown, USA
4. Date: October 26, 2023
5. IRS Address: Specific IRS Service Center address
6. Subject: Revocation of S Corporation Election
7. To Whom It May Concern,
8. This letter is to formally revoke the S corporation election for ABC Widgets, Inc.
9. Our Employer Identification Number is 12-3456789.
10. We are making this revocation voluntarily.
11. The effective date of this revocation is January 1, 2024.
12. We understand that upon revocation, our corporation will be taxed as a C corporation.
13. Please confirm receipt of this revocation and the effective date.
14. Thank you for your attention to this matter.
15. Sincerely,
16. John Smith
17. President
18. ABC Widgets, Inc.
19. Contact Number: 555-123-4567
20. Email: john.smith@abcwidgets.com
21. Page 1 of 1

S Corp Revocation Letter Sample: Inadvertent Termination Due to Shareholder Changes

1. Business Name: Innovative Solutions LLC
2. EIN: 98-7654321
3. Address: 456 Oak Avenue, Sometown, USA
4. Date: October 26, 2023
5. IRS Address: Specific IRS Service Center address
6. Subject: Revocation of S Corporation Election - Inadvertent Termination
7. To Whom It May Concern,
8. This letter is to inform the IRS of the inadvertent termination of the S corporation election for Innovative Solutions LLC.
9. Our Employer Identification Number is 98-7654321.
10. The termination occurred due to a change in shareholder status, specifically the addition of a non-eligible shareholder on [Date of Shareholder Change].
11. We believe this termination was inadvertent and not intentional.
12. We request that the IRS acknowledge this inadvertent termination.
13. The effective date of termination is [Date of Shareholder Change].
14. We will now be taxed as a C corporation.
15. We are seeking to correct this situation.
16. Details of the ineligible shareholder: [Name and type of entity if applicable].
17. We have taken steps to rectify the situation by [Describe corrective action, e.g., having the ineligible shareholder sell their shares].
18. We are requesting relief from potential penalties due to inadvertent termination.
19. We have attached relevant documentation to support our claim.
20. We apologize for any inconvenience this may cause.
21. Please advise on any further steps required.
22. Sincerely,
23. Jane Doe
24. CEO
25. Innovative Solutions LLC
26. Contact Number: 555-987-6543
27. Email: jane.doe@innovativesolutions.com
28. Page 1 of 1

S Corp Revocation Letter Sample: Revocation Due to Loss of Eligible Shareholder Status

1. Business Name: Growth Partners Corp.
2. EIN: 11-2233445
3. Address: 789 Pine Lane, Villagetown, USA
4. Date: October 26, 2023
5. IRS Address: Specific IRS Service Center address
6. Subject: Revocation of S Corporation Election - Loss of Eligible Shareholder
7. To Whom It May Concern,
8. This letter serves as notification of the revocation of the S corporation election for Growth Partners Corp.
9. Our Employer Identification Number is 11-2233445.
10. The revocation is necessitated by the loss of eligible shareholder status for one or more of our shareholders.
11. Specifically, [Name of Shareholder] is no longer an eligible shareholder as of [Date of Status Change].
12. This situation leads to an inadvertent termination of our S corp election.
13. We are hereby formally revoking our S corp status effective [Date].
14. We will be taxed as a C corporation going forward.
15. We believe this termination was unintentional.
16. We are taking steps to ensure compliance moving forward.
17. We are open to discuss any required adjustments.
18. Our goal is to maintain tax compliance.
19. We request confirmation of this revocation.
20. Thank you for your guidance.
21. Sincerely,
22. Michael Lee
23. CFO
24. Growth Partners Corp.
25. Contact Number: 555-111-2222
26. Email: michael.lee@growthpartners.com
27. Page 1 of 1

S Corp Revocation Letter Sample: Revocation Due to Becoming a Partnership or C Corporation

1. Business Name: Future Ventures Ltd.
2. EIN: 55-6677889
3. Address: 101 Maple Drive, Cityville, USA
4. Date: October 26, 2023
5. IRS Address: Specific IRS Service Center address
6. Subject: Revocation of S Corporation Election - Change in Entity Structure
7. To Whom It May Concern,
8. This letter formally revokes the S corporation election for Future Ventures Ltd.
9. Our Employer Identification Number is 55-6677889.
10. This revocation is due to our decision to convert our business structure.
11. Effective [Date of Conversion], Future Ventures Ltd. will operate as a [Partnership or C Corporation].
12. As a result of this entity change, our S corp election is no longer applicable.
13. We request that this revocation be processed accordingly.
14. The effective date of this revocation is [Date of Conversion].
15. We understand our new tax obligations.
16. We have filed the necessary paperwork for the entity conversion.
17. We are seeking to transition smoothly.
18. We require confirmation of this revocation.
19. Thank you for your assistance.
20. Sincerely,
21. Sarah Chen
22. Managing Director
23. Future Ventures Ltd.
24. Contact Number: 555-333-4444
25. Email: sarah.chen@futureventures.com
26. Page 1 of 1

S Corp Revocation Letter Sample: Revocation Due to Becoming a Publicly Traded Company

1. Business Name: Global Innovations PLC
2. EIN: 22-3344556
3. Address: 202 Birch Boulevard, Metropolis, USA
4. Date: October 26, 2023
5. IRS Address: Specific IRS Service Center address
6. Subject: Revocation of S Corporation Election - Public Offering
7. To Whom It May Concern,
8. This letter is to formally revoke the S corporation election for Global Innovations PLC.
9. Our Employer Identification Number is 22-3344556.
10. This revocation is being made in preparation for our upcoming Initial Public Offering (IPO).
11. Upon becoming a publicly traded company, our S corp status is no longer valid.
12. We hereby revoke our S corporation election effective [Date of IPO or intended effective date].
13. We understand that we will now be taxed as a C corporation.
14. This decision is a strategic move for our company's growth.
15. We have consulted with legal and tax professionals.
16. We are committed to fulfilling all tax requirements.
17. We request acknowledgement of this revocation.
18. Thank you for your prompt attention to this matter.
19. Sincerely,
20. David Kim
21. CEO
22. Global Innovations PLC
23. Contact Number: 555-555-6666
24. Email: david.kim@globalinnovations.com
25. Page 1 of 1

Navigating the world of business taxes can sometimes feel like a maze, but understanding how to properly revoke your S corporation status is a key step for many growing businesses. Whether it's a voluntary choice or due to unforeseen circumstances, having a clear understanding of what an s corp revocation letter sample entails will empower you to make the right move for your company. Always remember to keep copies of all correspondence with the IRS and consult with a tax professional to ensure you're meeting all your obligations.