Businesses can elect to be taxed as Subchapter S Corporations by submitting Form 2553, sometimes referred to as the Election by a Small Business Corporation. For small businesses trying to lower their tax liability, this form is essential. How do you send this paperwork to the IRS, though, is the question. Should you send it by fax or mail?
The most conventional method of sending Form 2553 to the IRS is through mail. It can be mailed to the IRS service location closest to your place of business. You can find the mailing address on the IRS website or in the Form 2553 instructions. After mailing, you should allow the IRS roughly 60 days to process your request before responding.
You can also fax Form 2553 to the IRS as an alternative. The IRS website and the Form 2553 instructions both list the fax number. It takes less time to fax a document than to mail it. You will hear back from the IRS in 24 to 48 hours letting you know whether or not your submission was accepted. However, before sending the form, make sure the fax number is accurate and all pages are readable.
Form 2553 can also be electronically signed. For this form, the IRS allows electronic signatures. The electronic signature must adhere to the IRS’s electronic signature requirements. A typed name, a digital copy of a handwritten signature, or a scanned image of a handwritten signature should also be acceptable forms of electronic signature.
Form 2553 is not required to be submitted annually. Your business will be taxed as a S corporation going forward once you file and the IRS accepts the form. But in other cases, you might need to submit a fresh Form 2553. For instance, you might need to submit a new Form 2553 if your company’s organizational structure changes or if the ownership changes.
Finally, if a Single Member LLC satisfies the requirements, it may submit Form 2553. The LLC ought to be able to file taxes as a S corporation. The LLC should also have just one owner. Before submitting Form 2553, the owner must also file Form 8832 to elect to be taxed as a corporation.
In conclusion, mailing and faxing Form 2553 to the IRS are both valid submission methods. Faxing, however, is quicker and more effective than mailing. The form can be signed online, and you are not required to complete Form 2553 every year unless your company undergoes material changes. Finally, if a Single Member LLC satisfies the prerequisites, it may submit Form 2553.