All posts with tag Form 2553
13 / 03 / 2015 by Greg Freyman, CPA in Business Tax

Filing For S Corporation Late Election Relief

Many existing C Corporations and new businesses elect to be taxed as an S Corporation. However, some of these businesses fail to meet the filing deadline, which is 75 days after incorporating or 2 months and 15 days after the beginning of the tax year. Fortunately, there are exceptions to this rule in which businesses may qualify for late election relief.

 

How does a business elect to be taxed as an S Corporation?

The company will need to file a Form 2553 with the IRS to elect to be taxed as an S Corporation. After this is completed, the IRS sends a CP261 Notice to businesses to confirm acceptance of the S Corporation election. If the business owner and/or accountant did not receive the letter or do not have record of it, they should contact the IRS directly at their Business and Specialty Tax Line at (800) 829-4933 (M-F, 7am-7pm).

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