Depending on the kind of form you are submitting, the response to this query will vary. The IRS can be faxed at (855) 214-7520 if you are filing Form 2553, which is needed to elect S corporation status. It is crucial to remember that the IRS will only accept faxed copies of Form 2553 if they are submitted within 60 days of the corporation’s creation or the beginning of the new tax year.
You cannot submit any other types of forms through fax, including Form 1120S, the annual tax return for S businesses. Instead, you must either mail the paperwork to the proper IRS processing location or electronically submit it.
It’s crucial to verify that the IRS has acknowledged your S corporation status after submitting Form 2553. By phoning the IRS at (800) 829-4933, you can check the status of your S corporation. It is advised to hold off phoning to inquire about the status for at least 60 days after submitting the form.
The IRS may apply a penalty of $195 for each month or portion of a month that the return is late, up to a maximum of 12 months, if you fail to submit a S corporation tax return by the deadline, which is normally March 15th. For each month or portion of a month that the return is late, the penalty can increase to 5% of the delinquent tax, up to a maximum penalty of 25% of the unpaid tax.
You must first establish a corporation or already be one in order to submit a S election. Following that, you must submit Form 2553 to the IRS. All shareholders must sign the form, which must be submitted no later than the 15th day of the third month of the corporation’s tax year. The choice will become effective for the subsequent tax year if the corporation has already started its tax year.
It is occasionally feasible to file as a S corporation after the fact. The corporation had to have known from the start that it wanted to be a S corporation and had to have complied with all S corporation regulations at the time. If the corporation wants to be regarded as a S corporation, Form 2553 must be submitted no later than two years and 75 days from the start of the tax year.
To sum up, it’s important to pay close attention to the requirements and timelines when applying for S company status. You can avoid needless problems by learning the penalty for late filing and knowing the correct IRS fax number. A tax expert should be consulted if you have any concerns or queries concerning the procedure.