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CPA told client that tax structure of an S corp is more advantageous than a C corp if income is unpredictable. And that appears to be the extent of the information provided. Client just now forwarded Form 2553, so you are correct. That is what was filed. Meeting with client tomorrow. Thanks for validating my concerns about this CPA.

Thanks, Lou. Excellent points. CPA neglected to point out the earlier tax filing deadline and made no mention of needing/not needing a new Tax ID number. Re your second comment, I certainly expect a CPA to know these things. I've broached the topic of other CPAs discreetly in the past. In 2023, I am giving up discretion...a late New Year's resolution.

Thank you. w-2 wages were paid. A contribution was made by the company, but he did not make an employee contribution. The accountant (who knows the corporate plan allows profit sharing contributions and was the one making the case for switching from C to S) now says he's uncomfortable without a statement of "some sort" that the contribution is deductible on the S-corp return. My understanding is that if it's deductible on the C-corp return, it should be deductible on the S-corp return. Am I missing something?

Can anyone tell me what impact (if any) changing from a C corp to and S corp might have on the company's profit sharing plan. The owner is the only employee.

The Plan was not set up as an owner only plan. It's owner only in that the owner of the C corp. is the only employee. If at some point there are employees, they could be eligible. I've been following the guidelines of the third party administrator that previously handled the plan. The company had a pretty dramatic setback during the pandemic, and I've been handling all administrative tasks as a volunteer. All previous filings were 5500SF so I was concerned that I filed the wrong form last year when I filed the 5500EZ. However, it seems to not really matter, if I'm understanding Ed's earlier response correctly. Thanks for responding!

Thank you. I do not need any more headaches!

C corp has a Profit Sharing Plan. The owner is (and has been) the only participant. I've previously filed 5500SF, but I mistakenly filed Form 5500EZ last year, and didn't realize it until filing 5500SF this year. Should I file an amended 5500SF for the year I filed the 5500EZ?