Instructions For Form 2553 - Election By A Small Business Corporation

Rev. Proc. 2002-39, identify if you are using the 25%

statement can be used instead of Part III to make the

gross receipts, annual business cycle, or seasonal

election. If there was an inadvertent failure to timely file a

business test. For the 25% gross receipts test, provide a

QSST election, see the relief provisions under Rev. Proc.

schedule showing the amount of gross receipts for each

2003-43.

month for the most recent 47 months. For either the

Note. Use Part III only if you make the election in Part I

annual business cycle or seasonal business test, provide

(that is, Form 2553 cannot be filed with only Part III

the gross receipts from sales and services (and inventory

completed).

costs, if applicable) for each month of the short period, if

The deemed owner of the QSST must also consent to

any, and the three immediately preceding tax years. If the

the S corporation election in column K of Form 2553.

corporation has been in existence for less than three tax

years, submit figures for the period of existence.

Paperwork Reduction Act Notice. We ask for the

If you check box Q1, you will be charged a user fee of

information on this form to carry out the Internal Revenue

$1,500 ($625 if your gross income is less than $1 million)

laws of the United States. You are required to give us the

(subject to change —see Rev. Proc. 2005-1 or its

information. We need it to ensure that you are complying

successor). Do not pay the fee when filing Form 2553.

with these laws and to allow us to figure and collect the

The service center will send Form 2553 to the IRS in

right amount of tax.

Washington, DC, who, in turn, will notify the corporation

that the fee is due.

You are not required to provide the information

requested on a form that is subject to the Paperwork

Box Q2

Reduction Act unless the form displays a valid OMB

If the corporation makes a back-up section 444 election

control number. Books or records relating to a form or its

for which it is qualified, then the section 444 election will

instructions must be retained as long as their contents

take effect in the event the business purpose request is

may become material in the administration of any Internal

not approved. In some cases, the tax year requested

Revenue law. Generally, tax returns and return

under the back-up section 444 election may be different

information are confidential, as required by section 6103.

than the tax year requested under business purpose. See

The time needed to complete and file this form will

Form 8716, Election To Have a Tax Year Other Than a

depend on individual circumstances. The estimated

Required Tax Year, for details on making a back-up

average time is:

section 444 election.

Recordkeeping . . . . . . . . . . . . . . . . . . . . . . .

9 hr., 19 min.

Boxes Q3 and R2

Learning about the law or the form . . . . . . . .

3 hr., 9 min.

If the corporation is not qualified to make the section 444

election after making the item Q2 back-up section 444

Preparing, copying, assembling, and sending

election or indicating its intention to make the election in

the form to the IRS . . . . . . . . . . . . . . . . . . . .

4 hr., 38 min.

item R1, and therefore it later files a calendar year return,

it should write “Section 444 Election Not Made” in the top

If you have comments concerning the accuracy of

left corner of the first calendar year Form 1120S it files.

these time estimates or suggestions for making this form

simpler, we would be happy to hear from you. You can

Part III

write to Internal Revenue Service, Tax Products

Coordinating Committee, SE:W:CAR:MP:T:T:SP, 1111

In Part III, certain qualified subchapter S trusts (QSSTs)

Constitution Ave. NW, IR-6406, Washington, DC 20224.

may make the QSST election required by section

Do not send the form to this address. Instead, see Where

1361(d)(2). Part III may be used to make the QSST

To File on page 2.

election only if corporate stock has been transferred to

the trust on or before the date on which the corporation

makes its election to be an S corporation. However, a

-4-

Instructions For Form 2553 - Election By A Small Business Corporation - 2005 Page 4

Related Articles

Related forms

Related Categories