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How to Fill in IRS Form 2553

Audrey Goodwin

2024-04-18 11:56:27 • Filed to: Other IRS Forms • Proven solutions

An S corporation is a corporation that passes its income, loss, deduction and credit to their shareholders for tax purposes. A business, company, which wants to be treated as an S corporation must use Form 2553 to make an election under the legal section 1362(a).

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IRS Form 2553 is critical to a business if it hopes to be treated as an S corporation. For business, efficiency is highly valued. Filling the IRS Form 2553 with Wondershare PDFelement - PDF Editor can be a fast process as numbers or figures are clear to be entered in each box or line.

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Instructions for Filling in IRS Form 2553

Step 1: Download PDFelement and launch the program. Open IRS Form 2553 with PDFelement.

Step 2: When you fill the form, enter the corporation's true name which has been mentioned in the corporate charter or any other document leading to its birth.

Step 3: If mailing address of a company coincides with someone else's such as shareholder then enter "C/O" and the person's name following the corporation's name.

Step 4: Write the corporations EIN in the given space. If your corporation is still devoid of one then apply for one as soon as possible.

Step 5: Form 2553 should be filed earlier than 2 months and 15 days after the date entered for object E.

Step 6: When a corporation is conducting election for its first tax year since existence, it should enter the beginning date of a tax year that begins on a date other than January 1.

Step 7: Each shareholder's consent should be acquired by getting his dated signature in either column K or on separate statement of consent.

Warnings and Tips for IRS Form 2553

When to file IRS Form 2553: To properly and timely conduct the elections, you must complete and file form 2553: No later than two months and 15 days after the commencement of the tax year election is to be effective. Any time throughout the tax year before the tax year it is take effect.

Note: The 2-month period commences on the day of the month tax year starts and culminates at the day which is numerically same to the second calendar month. If no such corresponding day is found to exist, use the last day of the calendar month.

Relief for Late Filing of IRS Form 2553

Late elections can be made available to corporation if it can show that failure to file form 2553 on time had a genuine cause.

For filling form for late elections, "FILED PURSUANT TO REV. PROC. 2013-30." must be written on the first page and top margin of the form.

Ineligible organizations for Elections

Following organizations are not eligible for elections to become an S corporation due to nature of their services. All organizations which manage and provide monetary funds of their clients are not eligible since incase losses the other clients are also badly affected.

a. An organization which has adopted reserve method of accounting for bad debts i.e. a bank or thrift organizations

b. A domestic International Sales Corporation or any company which was formerly so.

c. Insurance Companies which are subject to taxation under subchapter L of the Code

d. A corporation which has been elected to act and to be treated as a possessions corporation.

Form 2553 should be signed and dated by a competent authority in the company for example president and vice president, CEO, treasurer, or any other officer like Chief accounting officer or tax officer.
If the form 2553 is received without a dated signature, it will be returned and will not be considered filed on time
If some person and his or her spouse have a community interest in the stock or have an income from it, both of them must give their consent for election.
Once conducted, the election is effective until it is laid off or revoked. For conducting another election the company must get IRS consent on the form 2553 for any tax year before the 5th tax year after laid off the former election.
The services center of IRS informs the corporation if the election it made has been accepted or not and when will it take effect. In circumstance of non-acceptance, corporations are still alerted.