Form 2553

Form 2553

A form that a small business files with the IRS to be treated as an S-corporation for tax purposes.
References in periodicals archive ?
in number and type of shareholders and having only one class of stock), it can file a Form 2553, Election by a Small Business Corporation.
As mentioned on the IRS official website, corporations that are not S-corporations but are electing to file for status for this tax year must submit IRS Form 2553, signed by all the shareholders.
For federal tax purposes, a corporation must file Form 2553, Election by a Small Business Corporation, to gain S corporation status.
The entity fails S status solely because it failed to timely file Form 2553 with the applicable campus;
If an entity wants to be classified as an S Corporation, do they have to file both a Form 8832, Entity Classification Election, and a Form 2553, Election by a Small Business Corporation?
Procedurally, the LLC in this case would file Form 8832, elect to be treated as a corporation, and then file Form 2553 and elect to be treated as an S Corporation.
For example, if you elect S corporation status, you'll need to file an election on Form 2553 with the IRS, This simple form can be filled out after consulting with an attorney, in lieu of paying for the administrative time.
The election to be treated as an S-corporation must be made with the Internal Revenue Service on Form 2553 on or before the 15th day of the third month of a corporation's fiscal year (March 15 for a calendar-year company).
If the entity plans to elect to be treated as a corporation and become an S corporation on the same date, only Form 2553 is filed, and it should conform to S corporation rules.
In addition, the Form 2553 must include a statement explaining the reason for the failure to timely file the election(s).
A client that was a C corporation filed a Form 2553 and elected to be an 5 corporation.
Court of Appeals for the 6th Circuit recently ruled in favor of the IRS, because a couple could not prove that they had in fact mailed Form 2553 to the IRS seeking a beneficial tax status.