Converting the entity type for a 1065 or 1120S return

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UltraTax CS enables you to change a 1065 client's tax return to an 1120S return or vice versa. Doing so will permanently convert the entity type of the open client, and UltraTax CS will carry over most of the data that was previously entered on the existing client's return prior to conversion to the new entity type. During this process, you can automatically create a copy of the existing return to enable you to compare the returns after conversion or to maintain a copy for archival purposes. 

Converting an 1120S return to a 1065 return

Complete the following steps to convert an 1120S return to a 1065 return. 

  1. Choose File > Open Client to open the 1120S client you want to convert to a 1065 client.
  2. Choose File > Convert Entity Type to 1065.
  3. In the Convert from 1120S to 1065 dialog, enter the new client ID for the converted client, if desired.
  4. To save a copy of the original tax return with a new client ID, mark the Save a backup copy of the original client using this client ID checkbox and enter the backup client ID in the adjacent field.
  5. Click the Convert button to have UltraTax CS convert the entity type to a 1065 return.

Converting a 1065 return to an 1120S return

Complete the following steps to convert a 1065 return to an 1120S return. 

Note: You will receive the following critical diagnostic after converting a 1065 return to an 1120S return: "Review the shareholder's ownership percentages in View > Shareholder Information and the information on the state tabs." This critical diagnostic will not clear, but it will not prevent you from electronically filing the return.

  1. Choose File > Open Client to open the 1065 client you want to convert to an 1120S client.
  2. Choose File > Convert Entity Type to 1120S.
  3. In the Convert from 1065 to 1120S dialog, enter the new client ID for the for the converted client, if desired.
  4. To save a copy of the original tax return with a new client ID, mark the Save a backup copy of the original client using this client ID checkbox and enter the backup client ID in the adjacent field.
  5. Click the Convert button to have UltraTax CS convert the entity type to an 1120S return.

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