Can An LLC Really File Form 1120? Yes – But Don’t Make This Mistake + FAQs

Yes – an LLC can file Form 1120, but only if it’s taxed as a C corporation.

By default, the IRS does not treat an LLC as a corporation. A single-member LLC is usually a “disregarded entity” (its income goes on the owner’s personal tax return). A multi-member LLC defaults to a partnership (filing a partnership return). Neither of those default cases file Form 1120.

However, an LLC can elect to be treated as a corporation for tax purposes. In that case, it must file Form 1120, the U.S. Corporation Income Tax Return, each year just like any regular C corporation.

IRS rules currently (2025) maintain this classification system: LLCs choose their tax identity. The IRS has not fundamentally changed how LLCs are classified in recent years, but there have been tax law changes that affect the decision to elect corporate taxation.

For example, the Tax Cuts and Jobs Act of 2017 lowered the federal corporate tax rate to a flat 21%, making C-corp taxation more attractive for some businesses. Meanwhile, pass-through entities (like default LLCs) got a new 20% Qualified Business Income (QBI) deduction through 2025, which can lower the owner’s personal tax on LLC profits.

These changes mean LLC owners must carefully weigh the pros and cons of filing Form 1120. In summary, an LLC will file Form 1120 only if it has elected to be taxed as a C corporation (or is required to by specific circumstances). Otherwise, it will use other tax forms (such as Form 1065 or Schedule C) appropriate to its default classification.

(IRS Update: A special IRS rule requires foreign-owned single-member LLCs to file a pro forma Form 1120 (with Form 5472) for information reporting. This applies even if the LLC isn’t taxed as a corporation. It’s a compliance step introduced in recent years, mainly to report transactions with foreign owners. While this is not a typical income tax return scenario, it’s one case where an LLC that’s not a corporation still submits a Form 1120 cover page for disclosure.)*

Avoid These Pitfalls When Your LLC Files Form 1120

Electing to have your LLC taxed as a corporation can simplify some things, but it also introduces new responsibilities. Avoid these common mistakes when an LLC files Form 1120:

• Filing the Wrong Tax Form: Don’t automatically file Form 1120 just because you have an LLC. Only LLCs with C-corp tax status should file 1120. If your LLC is disregarded or a partnership, use the correct forms (Schedule C/E or Form 1065). Filing Form 1120 without a proper election can lead to IRS confusion and possible penalties.

• Missing the Tax Election (Form 8832): An LLC must formally elect corporate status by filing IRS Form 8832 (or Form 2553 for an S corp). Avoid filing Form 1120 before making this election. If you send in Form 1120 without electing to be taxed as a corporation, the IRS might reject the return or treat it as an invalid filing. Always submit the election form timely (generally effective at the start of the tax year) so your Form 1120 is expected.

• Ignoring Double Taxation: Remember that C corporations face double taxation – once at the corporate level (via Form 1120) and again on dividends to owners. LLC owners used to pass-through taxation can be caught off guard. Avoid surprise tax bills: if your LLC files 1120, plan for corporate tax payments and personal tax on any dividends. Don’t assume you can freely withdraw profits without tax consequences (owner draws from a C-corp LLC are typically taxable dividends or salaries subject to payroll tax).

• Not Paying Yourself a Salary (If Applicable): If you work in your LLC that’s taxed as a C corp, you generally become an employee of the company. Avoid the mistake of taking all profits as distributions. The IRS expects owner-employees of corporations to take reasonable compensation as W-2 wages. Failing to do so can raise red flags or lead to reclassification of payouts as wages (with back taxes and penalties for missing payroll taxes).

• Forgetting State Tax Obligations: States have their own rules. Avoid overlooking state corporate tax returns and fees when your LLC files Form 1120 federally. For example, if your California LLC elects to be taxed as a corporation, it must also file a California corporate return (Form 100) and pay at least an $800 franchise tax. If you had remained a standard LLC, California would instead impose an $800 LLC tax plus a gross receipts fee. Each state is different, so don’t assume the federal election has no state impact. Always check if your state requires additional forms, franchise taxes, or a separate S-corp election, etc., once your LLC’s tax status changes.

• Missing Deadlines and Extensions: A C-corp LLC’s Form 1120 is generally due by the 15th day of the 4th month after year-end (April 15 for a calendar-year company). Avoid late filing; if needed, file Form 7004 for an automatic extension. Also, if switching to corporate taxation, be mindful of when you make the election. A late election could mean your LLC shouldn’t file 1120 for the current year (and you might need to file as a partnership or sole proprietorship for that year instead). Plan ahead to meet IRS timing rules.

Key Tax Terms Explained: LLCs, Tax Status, and Form 1120

Understanding some fundamental terms will help clarify when an LLC files Form 1120. Here are key concepts and definitions related to LLC taxation and Form 1120:

• LLC (Limited Liability Company): A business structure formed under state law that provides limited liability to owners (members). An LLC is not a tax classification by itself – it’s a legal entity. The IRS “ignores” the LLC label for tax and instead taxes the business based on default rules or elections (as a disregarded entity, partnership, or corporation).

• Tax Classification: How the IRS views your business entity for tax purposes. An LLC can be classified as a disregarded entity, a partnership, or a corporation. This classification determines which tax return form you file (and whether Form 1120 is used).

• Disregarded Entity: An LLC with one owner (single-member LLC) by default is disregarded for federal tax. This means the IRS does not treat the LLC as separate from its owner. The LLC does not file a separate business tax return. Instead, the owner reports the LLC’s income on their own tax return (for example, on Schedule C of Form 1040 for business income, Schedule E for rental income, etc.). A disregarded LLC does not file Form 1120.

• Partnership (for tax purposes): If an LLC has two or more members and no corporate election, the IRS treats it as a partnership by default. The LLC must file Form 1065 (U.S. Partnership Return) each year, reporting income and allocations to partners. The LLC itself doesn’t pay income tax (it’s a pass-through entity); instead, each owner gets a Schedule K-1 from the LLC showing their share of profit, which they report on their personal tax return. A partnership-type LLC does not file Form 1120.

• C Corporation: A business entity taxed separately under Subchapter C of the Internal Revenue Code. Form 1120 is the tax return for a C corporation. If an LLC elects to be treated as a C corp, it becomes a taxpayer itself, paying corporate income tax on profits. Distributions to owners (dividends) are taxed again on owners’ returns. This is the scenario where an LLC does file Form 1120 (because for tax purposes it is a corporation).

• S Corporation: A corporation (or LLC electing corporate status) that further elects Subchapter S status. An S corp is a special type of corporation that is generally pass-through for taxes (avoiding double taxation). It files Form 1120-S each year, not Form 1120. If an LLC elects to be taxed as an S corp (by filing Form 2553 after either defaulting to or electing corporate status), it will file Form 1120-S and issue K-1s to its owners. (Important: S corp status has eligibility rules – e.g. limited number of shareholders, all must be U.S. persons, one class of stock, etc. LLCs can qualify in many cases, but not all entities can be S corps.)

• Form 1120 (U.S. Corporation Income Tax Return): The annual federal income tax return form for C corporations. This form reports the corporation’s income, deductions, tax, and other information. If your LLC is taxed as a C corp, Form 1120 is the return you file to the IRS. It is typically due April 15 (for calendar-year corporations). Note that Form 1120 is distinct from Form 1120-S (for S corps) and Form 1065 (for partnerships).

• Tax Election (Form 8832): The IRS form used by an LLC to elect its tax classification under the “check-the-box” regulations. By filing Form 8832, an LLC can choose to be taxed as a corporation instead of the default (or vice versa, if changing back). For example, a single-member LLC can file Form 8832 to elect to be treated as a corporation effective on a specified date. Once this election is in place, the LLC must file corporate tax returns (Form 1120) until/unless the classification changes again. There are limits on changing elections frequently (generally you cannot change again for 5 years without IRS permission).

• Tax Election (Form 2553): If an LLC wants to elect S corporation status, it must file Form 2553 (Election by a Small Business Corporation). Importantly, to file Form 2553, the LLC either must have filed Form 8832 to first be classified as a corporation or be default-treated as a corporation (some LLCs choose to skip directly to S corp if eligible). Filing Form 2553 on time (generally within 2½ months of the start of the tax year) will make the LLC an S corp for tax purposes. After that, the LLC files Form 1120-S annually (not a 1120). If Form 2553 isn’t filed or accepted, the LLC remains a C corp (if it elected corporate via 8832) and thus files Form 1120.

• Pass-Through Entity: A business entity that passes its income through to the owners’ personal tax returns, instead of paying tax at the business level. Partnerships, S corporations, and disregarded single-member LLCs are pass-through entities. Profits are taxed once (on owners). By contrast, a C corporation is not pass-through; it pays its own tax on profits.

• Double Taxation: A feature of C corporations where income can be taxed twice: first, the corporation pays corporate income tax on its profits (on Form 1120). Second, if the corporation distributes profits to owners as dividends, the owners pay personal income tax on those dividends. LLCs that stick with pass-through taxation avoid this double layer; LLCs that elect C-corp status take on the risk of double taxation. (Note: S corps avoid double taxation on operating profits, but can have it on certain built-in gains or if S status is terminated.)

• Internal Revenue Service (IRS): The U.S. federal tax authority. The IRS sets the rules for how entities like LLCs are taxed federally. While an LLC is created under state law, it’s the IRS that decides whether that LLC is taxed like a sole proprietorship, partnership, or corporation. The IRS requires the appropriate tax forms (1120, 1120-S, 1065, etc.) based on that classification. It also provides guidance (publications, regulations) and processes election forms like 8832 and 2553.

• State Tax Agency: Each state (and some cities) have their own tax departments (e.g., State Department of Revenue, Franchise Tax Board, etc.) that govern state-level taxes. States often follow the federal classification of an LLC (if your LLC is taxed as a C corp federally, the state will tax it as a corporation too), but they may impose additional requirements. For instance, many states impose an annual franchise tax or fee on LLCs regardless of federal tax status. Some states require a separate S corp election at the state level or have different tax rates for corporate income. Always consider state tax rules when your LLC changes tax classification.

Understanding these terms will help make sense of the scenarios and rules discussed next. Keep them in mind as we explore when an LLC should file Form 1120 and how different choices affect your taxes.

When Should an LLC File Form 1120 (and When Not)? – Detailed Scenarios

Not all LLCs file Form 1120. Here are detailed scenarios illustrating when an LLC should file Form 1120 and when it should not. Each example will clarify the proper tax form and why:

Single-Member LLC (Default Disregarded) – No Form 1120

Scenario: Jane owns 100% of an LLC called OneDesign LLC. She did not file any special tax election with the IRS.

What happens: By default, OneDesign LLC is a disregarded entity. For federal tax, it’s as if Jane is running a sole proprietorship. The LLC does not file a separate federal return at all. Instead, Jane will include the LLC’s business income and expenses on her personal Form 1040, typically on Schedule C (Profit or Loss from Business).

Form 1120?: No. OneDesign LLC should not file Form 1120 because it isn’t considered a corporation for tax purposes. Filing a corporate return in this case would be incorrect. Jane just files her personal taxes with the LLC’s info on a schedule. (Example nuance: If OneDesign LLC were a rental property business, Jane would use Schedule E for rental income. The key point is, the LLC itself doesn’t file a Form 1120 in any case here.)

Multi-Member LLC (Partnership Default) – No Form 1120

Scenario: Bob and Alice form Sunrise Developers LLC, with each owning 50%. They haven’t made any tax elections with the IRS.

What happens: Sunrise Developers LLC is treated as a partnership for federal tax by default. The LLC must file Form 1065 (U.S. Return of Partnership Income) each year. Form 1065 reports the business’s total income and deductions, but the LLC itself generally doesn’t pay income tax. Instead, it issues Schedule K-1 forms to Bob and Alice, allocating the profit (or loss) between them. Bob and Alice then report that income on their own tax returns.

Form 1120?: No. Sunrise Developers LLC should not file Form 1120. As a partnership-type LLC, its correct filing is Form 1065. If Bob and Alice mistakenly filed a Form 1120, it would be considered the wrong return type (unless they had actually elected corporate status). By sticking with the partnership filing, they maintain pass-through taxation and avoid any corporate-level tax.

LLC Electing C Corporation Status – File Form 1120

Scenario: XYZ Marketing LLC has three members who decide they want the company to be taxed as a C corporation starting this year. They file Form 8832 with the IRS to elect corporate tax treatment effective January 1.

What happens: Once the election is effective, XYZ Marketing LLC is no longer taxed as a partnership. The IRS now treats it as a C corp. For the year, XYZ Marketing must file Form 1120 just like any corporation would. The Form 1120 will include the LLC’s income, deductions, and calculate corporate tax owed (at the flat 21% federal corporate rate, as of current law). The LLC itself pays any tax due. If XYZ Marketing LLC distributes some of its after-tax profits to the members (now effectively shareholders for tax purposes) as dividends, each member will report the dividend on their personal return and pay tax on that separately.

Form 1120?: Yes. XYZ Marketing LLC must file Form 1120 each year going forward, as long as it remains under C-corp taxation. This example shows the primary scenario when an LLC files Form 1120: after choosing to be taxed as a corporation. The members should be prepared for corporate formalities in tax filing, like possibly making quarterly estimated tax payments for the LLC and keeping separate accounting of retained earnings, since profits no longer flow directly to their personal returns until distributed.

(Detailed example insight: The members might have chosen C-corp taxation for various reasons – perhaps to retain earnings within the company for growth without immediate personal tax, or to appear more like a corporation to investors. It’s a strategic choice: they accept the corporate tax obligations (Form 1120 and potential double taxation) in exchange for those benefits.)

LLC Electing S Corporation Status – Do Not File Form 1120 (Use 1120-S)

Scenario: QuickFix IT LLC is a single-member LLC owned by Maria. She wants to avoid corporate double taxation but reduce her self-employment tax, so she elects S corporation status for her LLC by filing Form 2553 with the IRS.

What happens: Once the S corp election is approved, QuickFix IT LLC is treated as an S corporation. Maria’s LLC will now file an Form 1120-S (S corporation tax return) each year. The LLC will still be a pass-through entity: it doesn’t pay federal income tax on its profits. Instead, it issues a Schedule K-1 to Maria for her share of income (likely 100% since she’s sole owner). Maria reports that income on her own tax return. However, because it’s an S corp, Maria is required to take a reasonable salary from the LLC’s earnings (which the LLC would deduct on the 1120-S). This salary is subject to payroll taxes, and remaining profits can be taken as distributions not subject to self-employment tax.

Form 1120?: No. QuickFix IT LLC does not file Form 1120. It files Form 1120-S instead due to the S corp status. If Maria accidentally filed a Form 1120, it would be a mistake because S corps have to file the S-specific return. (Note: If QuickFix IT’s S election ever gets revoked or invalidated, the LLC would default to a C-corp tax status and then would need to file Form 1120.)

Foreign-Owned Single-Member LLC – File Form 1120 (Information Only)

Scenario: GlobalTrading LLC is a single-member LLC owned entirely by a foreign corporation. Under default rules it’s a disregarded entity (so normally no Form 1120). However, it engages in some transactions with its foreign parent company.

What happens: The IRS requires any 25% foreign-owned U.S. “disregarded entity” to file Form 5472 to report certain transactions with the foreign owner or other related parties. To submit Form 5472, the LLC must attach it to a pro forma Form 1120. This means GlobalTrading LLC will file a Form 1120 with just the top identifying sections filled out (name, address, EIN, etc., and checking a box that it’s a foreign-owned disregarded entity), and no income tax computation on the form since it’s not actually taxed as a corporation. The purpose is purely informational for the IRS to keep track of foreign investments and money flows.

Form 1120?: Yes, but only as a shell. In this unique scenario, GlobalTrading LLC files a Form 1120 to satisfy reporting requirements, even though it hasn’t elected to be taxed as a corporation. It’s a compliance formality introduced in recent years (IRS regulations changed around 2017) to prevent tax avoidance. This is not a common situation for most small LLCs, but it’s important to be aware that some LLCs file Form 1120 for reporting even when no tax is due, due to the ownership structure. If GlobalTrading LLC had U.S. owners, it wouldn’t need to do this – it’s specifically a foreign-owner issue.

These scenarios cover the key situations you might encounter. In summary: default LLCs (single or multi-member) do not use Form 1120; LLCs that elect C-corp status do use Form 1120; LLCs that elect S-corp status use Form 1120-S instead; and a few special cases (like foreign-owned disregarded LLCs or an LLC that lost S status) can result in Form 1120 filings too.

LLC Tax Classification Options and Their Tax Forms (Comparison)

LLCs are versatile because they can choose how they are taxed. The tax classification you choose (or default into) determines which tax form the LLC files with the IRS each year. This table compares the most common classifications for an LLC and whether Form 1120 is involved:

LLC Scenario	Does it file Form 1120?	Federal Tax Filing Required
Single-Member LLC – one owner, no election (disregarded entity)	No	Owner reports business income on personal return (e.g. Schedule C with Form 1040).
Multi-Member LLC – multiple owners, no election (partnership)	No	LLC files Form 1065 partnership return; each member gets a K-1 for personal taxes.
LLC taxed as C Corporation – any number of owners, elected via Form 8832	Yes	LLC files Form 1120 corporate tax return (pays corporate tax on profits).

Three common scenarios for LLC taxation are shown above. In the first two scenarios (disregarded or partnership), the LLC’s income passes through to owners’ tax returns and no Form 1120 is filed. In the third scenario, the LLC becomes a corporation for tax purposes and must file Form 1120 (paying tax at the entity level).

It’s worth noting a fourth scenario: an LLC taxed as an S corporation. That case isn’t in the table because an S corp doesn’t file Form 1120 (it files Form 1120-S). However, it’s very common for LLCs to elect S corp status. So for completeness: an LLC electing S corp status is taxed as a pass-through entity and files Form 1120-S annually, while owners report their shares of income on their personal returns.

Comparison of Tax Impacts:

• Disregarded (Single-member): Simplicity and direct taxation. Profit is taxed once, on the owner’s return. No separate business income tax return (just a schedule). No corporate tax. However, the owner pays self-employment tax on all business profit (if active business). Form 1120 not used at all.

• Partnership (Multi-member): Pass-through taxation to multiple owners. The LLC files an informational return (Form 1065) and provides K-1s. Profits taxed once at owner level. Owners usually pay self-employment tax on their share of earnings (if active members). No Form 1120 for the partnership itself.

• C Corporation (elected): The LLC becomes a separate taxpayer. Corporate flat tax (21%) applies on LLC’s profits on Form 1120. Owners only taxed on money they actually receive as dividends or salaries. This can allow retained earnings to grow the business at a corporate tax rate. But if profits are distributed, there’s a double tax hit. Also, running a corporation means adhering to formalities (e.g., possibly payroll for owner-employees, separate accounting). Use Form 1120 for the return.

• S Corporation (elected): Hybrid approach. The LLC is a corporation for tax but one that avoids entity-level income tax. Profits pass through to owners (avoiding double taxation), similar to a partnership. Owners can potentially save on self-employment taxes by taking a portion of income as distributions (not all as salary). However, S corps require meeting specific IRS criteria and filing a different return (1120-S). Importantly, an S corp LLC must first be eligible and often initially classified as a corporation by Form 8832 or by default if formed under state law as a corporation and then elect S status.

In choosing a classification, Form 1120 becomes relevant only if you accept the C corporation model. Many LLCs start as pass-throughs and later elect corporate status if it benefits them (or vice versa). It’s also possible for an LLC to change classifications over its life (for example, start as disregarded, then elect S corp, etc.), but frequent changes are limited by IRS rules (generally you can’t flip-flop classifications more than once every 5 years without permission).

IRS and State Tax Agencies: How Each Treats LLC Tax Status

Federal vs. State: The IRS classification rules determine how your LLC is taxed federally, but state tax agencies can have their own twists. Generally, states honor the federal classification of your LLC. If your LLC is taxed as a partnership federally, the state will usually tax it as a partnership; if it’s taxed as a C corp federally (filing Form 1120), the state treats it as a corporation for state income tax too. However, there are important state-specific nuances to be aware of:

• State Tax Returns: If your LLC files Form 1120 federally, you will likely need to file a state corporate income tax return as well (in each state where the LLC has income or nexus). For instance, a New York-based LLC taxed as a C corp files a New York corporate franchise tax return. A Texas-based LLC taxed as a C corp must file a Texas franchise tax report (Texas has no personal income tax but does tax entities on gross revenue above a threshold).

• Franchise Taxes and Fees: Many states impose franchise taxes or annual report fees on LLCs regardless of tax status. For example, California charges an $800 annual tax on LLCs simply for the privilege of doing business, plus a gross receipts-based LLC fee for LLCs earning $250,000 or more (if the LLC is not taxed as a corporation). If that same California LLC elects corporate taxation, it must pay the $800 corporate franchise tax minimum (and 8.84% of profits if higher), but it avoids the LLC gross-receipts fee. In New York, an LLC taxed as a partnership pays an annual filing fee based on income, whereas an LLC taxed as a corporation pays the standard corporate franchise tax. Each state has its own rules – some states (like Delaware or Nevada) have franchise taxes or fees that apply to corporations and LLCs differently.

• State S Corporation Elections: If your LLC elects S corp status federally, some states require a separate state-level S corp election to recognize it. For example, New Jersey historically required an additional form to treat an S corp as such for state tax (although New Jersey laws have evolved recently to be more automatic). New York State and NYC also require separate elections for S status to be valid for their taxes. If you forget to do the state election, your LLC might be taxed as a C corp at the state level even while it’s an S corp federally, which can lead to unexpected state tax bills.

• Differences in Definitions: Some states classify businesses differently for certain taxes. For instance, an LLC with one owner might be disregarded for income tax but still considered a separate entity for sales tax or other state taxes. Also, an LLC might be subject to state entity-level taxes (like the LLC fee in CA, or the Illinois personal property replacement tax on partnerships, etc.) that don’t depend on federal classification.

• Registration and Compliance: Changing your LLC’s tax status to a corporation doesn’t change that it’s an LLC legally. But if taxed as a corporation, you may need to register for additional accounts (for example, get a separate employer identification number if you don’t have one, set up payroll withholding accounts with state labor departments if you pay salaries, etc.). State agencies that handle payroll taxes, unemployment insurance, or gross receipts taxes may need updated info if your LLC’s filing obligations change.

Bottom line: Always check both IRS rules and your state’s rules when deciding how your LLC should be taxed. The IRS governs the federal tax form (1120 vs 1065 etc.), but states can layer on extra taxes or requirements. Being an LLC taxed as a C corp can mean more complexity at the state level too. Consult state tax agency guidance or a tax professional to ensure you’re complying with all relevant laws in your state (or any state in which your LLC does business).

Frequently Asked Questions (FAQ)

Q: Can a single-member LLC file Form 1120?
A: Only if it elects to be taxed as a C corporation. By default a single-member LLC is disregarded and its owner reports business income on a Schedule C (no Form 1120).

Q: What tax form does a multi-member LLC file?
A: By default, a multi-member LLC files Form 1065 (partnership return). It does not file Form 1120 unless the LLC has elected to be taxed as a corporation.

Q: How can an LLC elect to be taxed as a corporation?
A: An LLC files IRS Form 8832 to choose corporate taxation. This “check-the-box” election, once approved, makes the LLC a C corporation for tax purposes (it will then file Form 1120).

Q: What is the deadline for an LLC to file Form 1120?
A: Form 1120 is due by the 15th day of the 4th month after the end of the LLC’s tax year (April 15 for a calendar-year LLC). Extensions until October 15 are available.

Q: Does an LLC taxed as a C corp pay double taxation?
A: Potentially, yes. The LLC will pay corporate tax on its profits via Form 1120. If it distributes profits to owners as dividends, the owners pay tax on those dividends individually (a second layer of tax).

Q: Why would an LLC want to file Form 1120 (be taxed as a C corp)?
A: Some LLCs elect C corp taxation to reinvest profits at a lower tax rate (21%) or to attract investors who prefer a corporation structure. It can also provide separation of personal and business taxes.

Q: Can an LLC switch from Form 1065 to Form 1120?
A: Yes. By filing Form 8832, a partnership-LLC can elect to be taxed as a corporation. The switch is typically effective at the start of a tax year. After electing, the LLC stops filing 1065 and starts filing 1120.

Q: What’s the difference between Form 1120 and Form 1120-S for an LLC?
A: Form 1120 is for C corporation taxation (the LLC pays tax on profits). Form 1120-S is for S corporation taxation (the LLC’s profits pass through to owners’ tax returns). An LLC must elect S corp status to use 1120-S.

Q: Do states require additional filings if my LLC files Form 1120?
A: Often, yes. If federally taxed as a corporation, your LLC usually files a state corporate tax return and pays any state corporate taxes or franchise taxes. Check your state’s requirements when you change tax status.

Q: What happens if my LLC filed the wrong tax form?
A: If an LLC files an incorrect return (say, Form 1120 when it should file 1065 or vice versa), you may need to amend or file the correct form. The IRS may reject the wrong form. It’s wise to consult a tax professional to straighten out the classification and possibly file Form 8832 retroactively (with IRS approval) if needed. Always correct any filing mistakes promptly to minimize penalties.