Instructions For Form 2553 - Election By A Small Business Corporation

Example 3. Tax year less than 2 1/2 months. A calendar

corporation should generally receive a determination on its

year small business corporation begins its first tax year on

election within 60 days after it has filed Form 2553. If box

November 8. The two month period ends January 7 and 15

Q1 in Part II is checked, the corporation will receive a ruling

days after that is January 22. To be an S corporation

letter from the IRS in Washington, DC, that either approves

beginning with its short tax year, the corporation must file

or denies the selected tax year. When box Q1 is checked, it

Form 2553 during the period that begins November 8 and

will generally take an additional 90 days for the Form 2553

ends January 22. Because the corporation had no prior tax

to be accepted.

year, an election made before November 8 will not be valid.

Care should be exercised to ensure that the IRS receives

A late election generally is effective for the next tax year.

the election. If the corporation is not notified of acceptance

However, a late election will be accepted as timely filed if

or nonacceptance of its election within 2 months of the date

the corporation can show that the failure to file on time was

of filing (date faxed or mailed), or within 5 months if box Q1

due to reasonable cause.

is checked, take follow-up action by calling 1-800-829-4933.

Relief for late elections. To request relief for a late

If the IRS questions whether Form 2553 was filed, an

election, the corporation generally must request a private

acceptable proof of filing is (a) a certified or registered mail

letter ruling and pay a user fee in accordance with Rev.

receipt (timely postmarked) from the U.S. Postal Service, or

Proc. 2007-1, 2007-1 I.R.B. 1 (or its successor). However,

its equivalent from a designated private delivery service (see

the ruling and user fee requirements may not apply if the

Notice 2004-83, 2004-52 I.R.B. 1030 (or its successor)); (b)

following revenue procedures apply.

Form 2553 with an accepted stamp; (c) Form 2553 with a

•

If an entity eligible to elect to be treated as a corporation

stamped IRS received date; or (d) an IRS letter stating that

(a) failed to timely file Form 2553, and (b) has not elected to

Form 2553 has been accepted.

be treated as a corporation, see Rev. Proc. 2004-48,

Do not file Form 1120S for any tax year before the

2004-32 I.R.B. 172.

year the election takes effect. If the corporation is

•

If a corporation failed to timely file Form 2553, see Rev.

now required to file Form 1120, U.S. Corporation

CAUTION

Proc. 2003-43, 2003-23 I.R.B. 998.

Income Tax Return, or any other applicable tax return,

•

If Form 1120S was filed without an S corporation election

continue filing it until the election takes effect.

and neither the corporation nor any shareholder was notified

by the IRS of any problem with the S corporation status

End of Election

within 6 months after the return was timely filed, see Rev.

Once the election is made, it stays in effect until it is

Proc. 97-48, 1997-43 I.R.B. 19.

terminated. IRS consent generally is required for another

Where To File

election by the corporation (or a successor corporation) on

Form 2553 for any tax year before the 5th tax year after the

Send the original election (no photocopies) or fax it to the

first tax year in which the termination took effect. See

Internal Revenue Service Center listed below. If the

Regulations section 1.1362-5 for details.

corporation files this election by fax, keep the original Form

2553 with the corporation’s permanent records.

Specific Instructions

Use the following

If the corporation’s principal

Internal Revenue Service

business, office, or agency is

Center address or fax

Part I

located in:

number:

Name and Address

Connecticut, Delaware, District of

Enter the corporation’s true name as stated in the corporate

Columbia, Illinois, Indiana,

charter or other legal document creating it. If the

Kentucky, Maine, Maryland,

corporation’s mailing address is the same as someone

Massachusetts, Michigan, New

else’s, such as a shareholder’s, enter “C/O” and this

Hampshire, New Jersey, New

Cincinnati, OH 45999

person’s name following the name of the corporation.

York, North Carolina, Ohio,

Fax: (859) 669-5748

Include the suite, room, or other unit number after the street

Pennsylvania, Rhode Island,

address. If the Post Office does not deliver to the street

South Carolina, Vermont,

address and the corporation has a P.O. box, show the box

Virginia, West Virginia,

number instead of the street address. If the corporation

Wisconsin

changed its name or address after applying for its employer

identification number, be sure to check the box in item D of

Alabama, Alaska, Arizona,

Part I.

Arkansas, California, Colorado,

Florida, Georgia, Hawaii, Idaho,

Item A. Employer Identification Number

Iowa, Kansas, Louisiana,

(EIN)

Minnesota, Mississippi, Missouri,

Ogden, UT 84201

Enter the corporation’s EIN. If the corporation does not have

Montana, Nebraska, Nevada,

Fax: (801) 620-7116

an EIN, it must apply for one. An EIN can be applied for:

New Mexico, North Dakota,

•

Online – Click on the EIN link at

Oklahoma, Oregon, South

small. The EIN is issued immediately once the application

Dakota, Tennessee, Texas,

information is validated.

Utah, Washington, Wyoming

•

By telephone at 1-800-829-4933 from 7:00 a.m. to 10:00

p.m. in the corporation’s local time zone.

•

By mailing or faxing Form SS-4, Application for Employer

Acceptance or Nonacceptance of

Identification Number.

Election

If the corporation has not received its EIN by the time the

The service center will notify the corporation if its election is

return is due, enter “Applied For” and the date you applied in

accepted and when it will take effect. The corporation will

the space for the EIN. For more details, see the Instructions

also be notified if its election is not accepted. The

for Form SS-4.

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Instructions For Form 2553 - Election By A Small Business Corporation - 2006 Page 2

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