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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13125
Experience:  15years with H & R Block. Divisional leader, Instructor
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I started an LLC in March of this year. On September 23, 2011

Customer Question

I started an LLC in March of this year. On September 23, 2011 I filled out form 2553 to be taxed like an S-Corporation. I wanted it to be effective starting 1/1/2011. However, I just got a letter back saying it was denied because it was not timely filed and wont be effective until 1/1/2012 (1 year later than I would like).

Is there anyway to fix this? I've done some searches and I think you can apply for a Revenue Procedure??
Submitted: 4 years ago.
Category: Tax
Expert:  Robin D. replied 4 years ago.

Hello and thank you for using Just Answer.

If the election Form 2553 has not been timely filed, the corporation must generally request relief for the late election by requesting a private letter ruling and paying a user fee in accordance with Rev. Proc. 2008-1, I.R.B. 2008-1 (or its successor). However, certain relief provisions are available.

If the Form 2553 has not been timely filed, a corporation's Form 1120S cannot be accepted and processed by the Service Center. The Service Center will notify the corporation of the invalid S election and the corporation should follow these steps:

File a copy of the Form 2553 with the initial Form 1120S. On the Form 2553, provide a statement establishing reasonable cause for the failure to file the Form 2553 timely.

Note: To qualify for this relief provision, the Form 1120S and attached Form 2553 must be filed within 6 months of the due date of the Form 1120S (excluding extensions).

Rev. Proc. 2007-62, I.R.B. 2007-41

Customer: replied 4 years ago.

So does this mean when I file my 2011 tax return for my S-Corporation (due March 15th, 2012), I just attach another 2553 and a statement saying why it's late?



Expert:  Robin D. replied 4 years ago.
That is correct.
Customer: replied 4 years ago.

I guess I'm still a little un-sure about this. Still kinda confused on why its late.


What would happen if I incorporated my business in November 1, 2011. On Novemember 3, 2011 I filed out the 2553 and elected to be taxed as an S-Corporation for all of 2011. Would I still file the 2553 under a rev-procedure then because it would be considered late (past March 15, 2011?)

Expert:  Robin D. replied 4 years ago.
Yes you would still need to file the 2553 with the return.