You might be wondering how to find out if a S corporation (S corp) election you recently submitted was accepted or not. Here are some actions you can take to determine your S corp’s status and what you should know about filing and casting ballots. Instructions for Making a S Corporation Election
Form 2553, Election by a Small Business Corporation, must be completed in order to make a S corporation election. All shareholders must sign this document, which must be submitted to the Internal Revenue Service (IRS) within two months and fifteen days of the start of the tax year to which the election is applicable. As an alternative, you can submit Form 2553 at any time in the tax year prior to the year to which the election is applicable.
By the fifteenth day of the third month of their tax year, S corporations must make their choice. So, if your tax year begins on January 1, you have until March 15 to make the choice. You can still make an election if you miss this deadline, but it will take effect for the subsequent tax year. Can You Submit an S-Corp Election Lately? You can still submit a late election if you miss the deadline for a S corporation election. You must write a letter to the IRS outlining the reasons the election was delayed and requesting relief in order to accomplish this. Based on the details of your case, the IRS will then decide whether to award relief.
Can You Apply for an S-Corp Retroactively? You might be asking if you can retrospectively file as a S corporation if you neglected to make a S corporation election. Unfortunately, the choice to become a S corporation must be made before to the start of the tax year or within the first two months and fifteen days of the tax year. You will have to wait until the next year to hold the election if you miss this deadline.
How to Check whether Your S Corporation Has Been Approved
Once you’ve submitted your S company election, you can verify with the IRS to see if it was accepted. You can monitor the progress of your tax return online or by calling the IRS Business and Specialty Tax Line. The name of your company, your employment identification number (EIN), and the day you submitted your election must all be included.
To sum up, submitting a S corporation election might be a difficult procedure, but it is crucial to guarantee that your company is taxed correctly. It is advised that you see a tax expert for guidance if you are unsure about any step of the procedure.
You must typically submit Form 2553 to the IRS within 75 days of your company’s incorporation date or within 75 days of the beginning of your tax year if you want to elect S-Corp status. To make sure you don’t miss any crucial dates, it’s wise to speak with a tax expert because the deadline may differ depending on specific circumstances.
Generally speaking, S corporations pay less tax than LLCs. This is due to the fact that S corporations can exclude a portion of their income from self-employment taxes. The tax situation for each business will, however, vary depending on a number of variables, including their income, costs, and organizational structure. In order to choose the best course of action for your particular firm, it is advised that you speak with a tax expert.