When a client revokes their s election to become a c corp, what should their last 1120s look like? I know you mark the box "S election termination" on page 1 and you want to mark the K-1s as "final". But do you distribute out the sch L to end everything in zero, or do these balances just roll into the initial 1120 as beginning balances? Anything else to watch out for?

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Posting as :
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You are currently posting as works at

I beleive you Roll because the c corp is a continuation, which does not cause a liquidation of the s corp

This is the answer I was hoping for :)

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