Late S-Corp Election

[yeknod]

S-Corp elections was not filed on time.  How do I go about filing a late S-Corp election with the first year tax return?  

 I have read this needs to be included at the top of the tax return "FILED PURSUANT TO REV. PROC. 2013-30.".  I entered in the reasonable cause sections that the company's president neglected to file form 2553 on time and he did not know advanced notice was required.  Is that all that needs to be included?  Are there other steps to assure the election is approved?

[yeknod]

Also, can it be electronically filed?  Or does it need to be mailed in?

[TaxGuyBill]

It sounds good.  It can be attached to the e-filed tax return.

Just to check - was an extension filed (so it is still timely-filed)?  Is this a Corporation or an LLC?

[yeknod]

It is a Corporation.

The extension was not filed due to it mistakenly being setup as a LLC with the IRS at first.  That was not discovered until after the extension due date.

What about the signatures of all the officers of the corporation?

[ljr]

I tried to e-file an extension for an s-corp that sent in the form late and has not received a response from IRS yet. Extension rejected with error not correct corp type. I don't know if the actual return will efile with the form. I tried attaching it to the extension and it didn't work. 

[IRonMaN]

It can't be e-filed.  The IRS doesn't know that you want to be an 1120S when you grow up so the 1120S return will be rejected when you try to e-file it.

[yeknod]

So, I guess the best way to file is as a C-Corp for 2022? and file the 2553 for 2023's taxes at this point?

[TaxGuyBill]

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@IRonMaN wrote:

It can't be e-filed.  The IRS doesn't know that you want to be an 1120S when you grow up so the 1120S return will be rejected when you try to e-file it.

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From what I've read, it is accepted.  I think the attachment plus the checkbox "G" for the first S-year bypasses the rejection.

[IRonMaN]

I've had a couple 1120S returns bounce over the years because the 2553 wasn't filed, but I see that a 2553 is now listed as a pdf attachment so I guess that is possible.  Where did you read that?

[TaxGuyBill]

I've seen people say that on several other forums and Facebooks groups. 

During Covid (when the IRS was so behind), I even read that people would do it the second year too because the IRS hadn't gotten around to approving the first one.