For small businesses that want to be recognized as Subchapter S corporations for federal income tax reasons, Form 2553, also known as the Election by a Small Business Corporation, is a crucial document. It is used to choose a S corporation’s pass-through tax status, allowing the corporation’s earnings, credits, and deductions to be distributed to shareholders rather of subjecting them to corporate tax. Many business owners have issues about how to submit the paperwork, including whether it may be faxed. The core question is addressed in this article, along with material that is pertinent.
The Internal Revenue Service (IRS) can receive Form 2553 by fax, but only if the fax number is available. For the convenience of taxpayers, the IRS accepts faxed copies of Form 2553, but it is not required. An authorized officer of the corporation must sign the faxed document, date it, and do so under penalty of perjury. Only a complete and legible form that has been faxed to the IRS will be processed. The IRS will reject the form if there are any mistakes or blank fields, and they will ask for a corrected copy.
Where should I send my 2553 in response? The form can be mailed to the IRS service center where the corporation’s tax return will be submitted if you’d rather do that than fax it. The address can be located on the IRS website or in the form’s instructions. By March 15 of the year after the year the election is to take effect, the corporation must file its tax return. For instance, the form must be submitted by March 15th, 2022, if the election is to be effective for the 2022 tax year.
You must utilize a fax machine or an online fax provider in order to send a fax to the IRS. On the form’s instructions or the IRS website, you can find the fax number for the IRS service center. Verify the form is accurate, legible, and signed by an authorized corporation officer before faxing it. For your records, keep a copy of the fax receipt.
No, you cannot submit Form 2553 online. However, the Form 1120S, the tax return for S corporations, has an electronic filing alternative provided by the IRS. The IRS website or approved e-file companies both offer the option of electronic filing. The corporation must have already submitted Form 2553 and gotten IRS approval in order to use this option.
Yes, provided certain conditions are satisfied, Form 2553 can be signed online. The Treasury Regulation section 1.1441-1(e)(2)(iv)(B), which involves employing a program that creates a unique code for each signature, requires that electronic signatures be made in accordance with certain procedures before they can be accepted by the IRS for use on Form 2553. Additionally, the electronic signature needs to be given under penalty of perjury. The form must be manually signed and submitted or faxed to the IRS if the signature criteria are not met.
Refer to the relevant notice for directions on where to submit it if you need to fax an IRS notification. Depending on the type of notification and where you are, there may be a difference in the fax number and address.