"To elect an S-corporation taxation entity for your business, you must submit IRS Form 2553. This must take place no more than two months and 15 days after the tax year that you want this change to go into effect.

What a mess."

Your point above is exactly what I mentioned to the CPA from the first time we ever spoke and he said he would elect it when he filed her taxes so it wasn't an issue.

This forum has help me realize that what I suspected was true; this guy they chose doesn't follow the rules (whether by ignorance or intention) and, in any case, neither I nor my clients need to be associated with him. 

We are searching for a new tax preparer (CPA and/or EA) now. I know it's an awful time of year for it, but it's time to move on.

What a mess, indeed. 

Thanks again for your time and help. 

S