Instructions For Form 2553 - Election By A Small Business Corporation - 2006 Page 4

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seasonal business test, provide the gross receipts from
failure to timely file a QSST election, see the relief
sales and services (and inventory costs, if applicable) for
provisions under Rev. Proc. 2003-43.
each month of the short period, if any, and the three
Note. Use Part III only if you make the election in Part I.
immediately preceding tax years. If the corporation has been
Form 2553 cannot be filed with only Part III completed.
in existence for less than three tax years, submit figures for
The deemed owner of the QSST must also consent to the
the period of existence.
S corporation election in column K of Form 2553.
If you check box Q1, you will be charged a user fee of
$1,500 (subject to change by Rev. Proc. 2008-1 or its
Paperwork Reduction Act Notice. We ask for the
successor). Do not pay the fee when filing Form 2553. The
information on this form to carry out the Internal Revenue
service center will send Form 2553 to the IRS in
laws of the United States. You are required to give us the
Washington, DC, who, in turn, will notify the corporation that
information. We need it to ensure that you are complying
the fee is due.
with these laws and to allow us to figure and collect the right
amount of tax.
Box Q2
You are not required to provide the information requested
If the corporation makes a back-up section 444 election for
on a form that is subject to the Paperwork Reduction Act
which it is qualified, then the section 444 election will take
unless the form displays a valid OMB control number. Books
effect in the event the business purpose request is not
or records relating to a form or its instructions must be
approved. In some cases, the tax year requested under the
retained as long as their contents may become material in
back-up section 444 election may be different than the tax
the administration of any Internal Revenue law. Generally,
year requested under business purpose. See Form 8716,
tax returns and return information are confidential, as
Election To Have a Tax Year Other Than a Required Tax
required by section 6103.
Year, for details on making a back-up section 444 election.
The time needed to complete and file this form will
depend on individual circumstances. The estimated average
Boxes Q3 and R2
time is:
If the corporation is not qualified to make the section 444
election after making the item Q2 back-up section 444
Recordkeeping . . . . . . . . . . . . . . . . . . . . . . .
9 hr., 19 min.
election or indicating its intention to make the election in
item R1, and therefore it later files a calendar year return, it
Learning about the law or the form . . . . . . . .
3 hr., 9 min.
should write “Section 444 Election Not Made” in the top left
Preparing, copying, assembling, and sending
corner of the first calendar year Form 1120S it files.
the form to the IRS . . . . . . . . . . . . . . . . . . . .
4 hr., 38 min.
Part III
If you have comments concerning the accuracy of these
In Part III, the income beneficiary (or legal representative) of
time estimates or suggestions for making this form simpler,
certain qualified subchapter S trusts (QSSTs) may make the
we would be happy to hear from you. You can write to
QSST election required by section 1361(d)(2). Part III may
Internal Revenue Service, Tax Products Coordinating
be used to make the QSST election only if corporate stock
Committee, SE:W:CAR:MP:T:T:SP, 1111 Constitution Ave.
has been transferred to the trust on or before the date on
NW, IR-6406, Washington, DC 20224. Do not send the form
which the corporation makes its election to be an S
to this address. Instead, see Where To File on page 2.
corporation. However, a statement can be used instead of
Part III to make the election. If there was an inadvertent
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