I have a fiscal year C corp client. Year ended 9/30. We are contemplating electing S status.
If we elect S for the fiscal year starting 10/1, we have a short S year followed by calendar S years. We want a short C year, with the first S year starting 1/1/09.
I have been informed we should file a change of fiscal year and an S election effective 1/1 at the same time, before 3/15/09, and all will work as I desire. I am concerned about the 75 day rule for electing S and the fiscal to calendar year elections.
Is the proper form for making the year change election Form 8716? I have read the instructions (both pages) and we don't quite fit what they're discussing.
Am I correctly understanding the process? Two forms, one envelope, one short C year followed by a calendar S year?