Newly formed S-Corp Effective Start Date Rejected even though filed within 75 days
Hello,
An accountant set up an S-Corp for me in 7/2019. The IRS rejected the designation for 2019 so the effective start date is 1/1/2020.
All the paperwork was done within the same 2 week period - formation and IRS paperwork. So I thought the S-Corp election would be accepted because it was done within 75 days of formation?
Here is what the IRS rejection indicated :
"We didn't accept your Form 2553 for the requested effective date under the revenue procedure because your request was missing a reasonable cause and/or consistency statements. To qualify, the request for relief must be accompanied by all applicable statements. More information about Rev. Proc. 2013-30 can be obtained at irs.gov/irb/20l3-36_IRB/arl2.html"
My accountant's solution was to re-fax the original paperwork as he thinks it was due to a "clerical error at the IRS". Will that be sufficient?
Thank you
