10/08/2026
A new client came to us after going a full year without filing, because a move had pushed taxes to the bottom of the list.
They already had an S-Corp election in place, and filing that S-Corp return late came with a $3,700 penalty. The tempting move was to walk the election back and make the penalty go away. When we ran the numbers, filing as an S-Corp saved them about $12,000 in tax, which left roughly $8k in their pocket after the penalty. There's also a good chance we can get that penalty reduced or removed, and every dollar we get back adds to their savings.
Walking it back would have cost them more over time. Once you revoke an S-Corp election, the IRS generally won't let you make a new one for five years, so they'd have lost those savings for the next five tax years too.
Life gets busy, and a missed year doesn't have to undo the work you've already put into your tax setup. We look at the full math before making a call, and then we stay with you year-round so it doesn't happen again.
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