Eligible domestic corporations, such as S Corporations, use Form 2553, also known as the Election by a Small Business Corporation, to elect for tax reasons. The Internal Revenue Service (IRS) must receive it by the deadline, which varies based on the situation. We’ll address some of the most frequently asked queries regarding the Form 2553 filing deadline in this article.
When Should Form 2553 Be Filed? A corporation typically needs to submit Form 2553 by the 15th day of the third month of its tax year. For instance, the due date for submitting Form 2553 is March 15 if the tax year for a corporation starts on January 1. There are a few exceptions to this rule, though. As an illustration, a corporation that meets the criteria to be considered a newly-formed organization has 75 days from the date of creation to file Form 2553. Furthermore, if a corporation’s tax year started before January 1, 2021, and it hasn’t yet submitted Form 2553, it still has until March 15, 2021, to do so in order to qualify for the S Corporation tax treatment for the 2021 tax year. What Is the Fax Number for the IRS? Use the IRS’s eFax facility to send Form 2553 to the organization. You must first register for an account on the IRS website before you can upload your form. A confirmation email will be sent to you once the form has been properly submitted. As an alternative, you can use a conventional fax machine to send your paperwork to the IRS. Check the directions on Form 2553 or the IRS website for the appropriate number as it depends on your area.
A Single Member LLC may submit Form 2553. No, LLCs with a single member are not permitted to submit Form 2553. just domestic corporations that meet certain criteria, such as having 100 shareholders or fewer and just one class of stock, are permitted to use the structure. However, by submitting Form 8832, Entity Classification Election, and then Form 2553, a single-member LLC can still choose to be taxed as a S Corporation. Does an LLC Need to Submit Form 2553?
No, Form 2553 is not required to be filed by LLCs. However, if an LLC satisfies the prerequisites and chooses to be taxed as a S Corporation, it can do so by submitting Form 2553 to the IRS. This can be advantageous for LLCs that desire to pass down their income, losses, deductions, and credits to their shareholders rather than pay taxes twice. Remember that before submitting Form 2553, LLCs must first satisfy the IRS’ eligibility requirements.
The tax year and the date of the corporation’s incorporation are two elements that affect the deadline for submitting Form 2553. Eligible corporations may benefit from S Corporation taxation if the form is submitted on time. You can use a standard fax machine or the IRS’s eFax technology to send Form 2553 to the organization. Single-member LLCs can nonetheless opt S Corporation taxation by completing Form 8832 before Form 2553 even though they are not allowed to file Form 2553. Finally, while LLCs are not obligated to file Form 2553, they are permitted to do so if they fit the criteria.