Hi all,
So back in January 2024 I formed an S-corp with the help of an attorney, and he pre-filled form 2553 for me. I didn't sign or anything. I contacted my CPA who did payroll for me shortly after, also informing them that I just formed an S-corp.
Fast forward to early 2025, my CPA asked me to submit this 2553 form on the portal back in (to prepare for 2024 taxes), so I submitted the whole S-corp package that the attorney prepared. Today, I received a notice from the IRS that they didn't accept form 2553, either we didn't file or it was incomplete. They asked me to correct this and include reasonable cause statement.
What happens now? I never even heard of this form and solely relied on the attorney/CPA to make sure that everything goes smoothly. Will the CPA firm or attorney take care of this issue for me? I never got any instructions to file any form myself. Thank you
My CPA forgot to file form 2553 for S-corp election, what now?
byu/morningstarprime intax
Posted by morningstarprime
3 Comments
The notice should have instructions on it but I believe you could just resubmit the 2553 with the items there requesting and use rev proc 2013-30
It’s not a big deal because you’re still in the late election relief period of 3 years and 75 days. You need to submit form 2553 (I recommend sending by fax AND certified mail even though the instructions say this can slow down processing). You will request late election relief “filed pursuant to Rev. Proc 2013-30”. Your election date should be the date you intended to begin operating as an S-Corp (presumably 1/1/24). Your reasonable cause statement can be very short and straightforward, they’re extremely lenient with this. Sign the bottom of page one and each shareholder will need to sign and date page 2 in box K.
IRS is notoriously bad about sending acceptance letters, so if you haven’t heard back from the IRS within 90 days I’d ask your CPA to get a POA and call PPS to confirm the status of the election.
Your CPA should know how to handle the 2553, and if they don’t I’d look for another tax pro. Good luck.
Interesting I am working on this exact same thing for a client