S-Corp filed 1040 instead of 1120s? How to fix it?
I have S-Corp for last 5 years. First few years I used a professional and all went fine; he filed 1120s and 1040 for me. But last 3 years I did it myself and did a huge mistake: I did not file 1120s and filed only 1040 as sole proprietor.
While I am the only employee in my S-Corp, I read that I needed to file 1120s anyways. Can someone please suggest what to do? I still have to file 2015 taxes; should I file them as 1120s?
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If you have an S-Corp, the S-Corp files the 1120S, and you still file a Form 1040 for yourself. Your S-Corp should give you a Schedule K-1, which you will use to complete Schedule E on your Form 1040. You do not file Schedule C because, for tax purposes, you are an employee of the S-Corp rather than self-employed. (The fact that you may own all shares of the S-Corp doesn't matter.)
The deadline for S-Corps that have a calendar year as their fiscal year was March 15, so you're probably already late for 2016 on the S-Corp.
Also keep in mind that the S-Corp is obliged to pay you a wage, so there should be employment taxes involved, which may or may not balance out if you tried to pay self-employment tax via your Schedule C. The S-Corp really should have issued you (and filed with the Social Security Administration) a W-2 for you as an employee each year.
At this point you better get professional help. Probably you'll need to file (late) a form 1120S for all of the missed years, get the corresponding Schedule K-1 for your personal tax for each year, and then file amended personal returns on Form 1040X for each year.
Really, though, better get some help professional help at this point.
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