IRS alters rules for S corp refunds. — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

IRS alters rules for S corp refunds.

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If your S corporation doesn’t have a valid business reason for using a fiscal year, it must pay the IRS a deposit based on its tax savings. In a new ruling, the IRS now says that fiscal-year firms have six years to request a refund of deposits. (IRS office of chief counsel memorandum 200607015) In the past, they had to seek a refund within three years. Deposits can be refunded if you’re no longer an S corp or the deposit exceeded the required amount. How to do it: File Form 8752 (Required Payment or Refund under Section 751).

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