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Late election to S Corp Form 2553

Forum|Forum|4 years ago
March 1, 2022
2 replies
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Hello,

Client submit form 2553, but has not received a response from IRS. I am attached Form 2553 on client's Corp tax return.

How to I get the language "INCLUDES LATE ELECTION(S) FILED PURSUANT TO REV. PROC. 2013-30" to show up on Form 1120S?

And "FILED PURSUANT TO REV. PROC. 2013-30" to show up on Form 2553 when I print out the tax return?

Thanks,

ProSeries Professional

This topic has been closed for replies.

Best answer by dkh

If the late SCorp election is made by attaching F2553 to the F1120S the program automatically prints INCLUDES LATE ELECTION(S) FILED PURSUANT TO REV. PROC. 2013-30"

There is a box to check on F2553 above Part I that will make "FILED PURSUANT TO REV. PROC. 2013-30" print on top of F2553

dkhAnswer

Level 15

If the late SCorp election is made by attaching F2553 to the F1120S the program automatically prints INCLUDES LATE ELECTION(S) FILED PURSUANT TO REV. PROC. 2013-30"

There is a box to check on F2553 above Part I that will make "FILED PURSUANT TO REV. PROC. 2013-30" print on top of F2553

2

2405218Author

Level 2

Great, thanks for the info.

dkh

Level 15

You're welcome

D

Dr-Perryman-EA

Level 2

I have a similar issue. However, I get a critical diagnostic in Lacerte trying to file 2553 with Late Election. The diagnostic indicates that I cannot file an election with the return of the start date of the entity is less that one from election.
So the entity was formed 6/18/21 and we want the late election to start on that date. Lacerte is not agreeing with me. BTW, the client mailed in the 2553 and Late Election 3/18/22. I have my fingers crossed that they have processed it. If not, what are my options/work arounds for getting Lacerte to take the 2553 with late election on 2021 being a short year?

Thank you in advance for reading my question and hopefully helping me find a solution.

Brian

joshuabarksatlcs

Level 9

What was the date on Line E of Form 2553?

In prior years, I have filed Form 2553 for late election with the return without any problem. The Line E date was the same as corporation beginning date. Perhaps if it was the initial year return, the Year beginning date should be the incorporation date instead of January 1.

In regards to efiling the return, if the IRS has not processed/approved the election and updated its computer, the efile will likely fail and the only option would be to paper file.

Back in 2020, client incorporated in October, and immediately sent in (paper filed) the election. The e-extension was rejected because in the eyes of the IRS, the corporation "was not an S corp". The extension was paper filed. Still NO S corporation approval was received in September 2021. The tax return efiling was rejected. Client ended up paper filing the return in September, along with form 2553 - citing the late filing procedure under the rev proc AND the explanation in terms of the sequence of events. In November or so (might even be January 2022), client received the S corp determination letter. The tax paper filing was accepted without a problem.

Hope this helps,

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