How to Fill Out & File IRS Form 2553 S-Corp Election Instructions

income tax return

A corporation or other entity eligible to be treated as a corporation files this form to make an election under section 1362 to be an S corporation. If you miss the deadline to file, check the Form 2553 instructions regarding a late filing. Shareholders receive dividends, which represent a share of the S corp earnings.

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For the upcoming Irs Form 2553 Instructions season, that filing deadline will be March 15, 2020. As far as state-level taxation is concerned, there are some variables for S corporations. Some states do not have any special tax treatment for S corporations.

When Is Form 2553 Due?

Do I need to use a lawyer, accountant, or notary to help me? You may think you need one, but it is not necessary to hire a lawyer, accountant or notary to help you create the Form 2553. Doing it this way you can save considerable money, particularly if you have to create many copies of the form. Written by lawyers & paralegals, our forms create legally binding documents that can be emailed or saved to your device. Hi Jeff, yes, an LLC taxed as an S-Corp can own another LLC taxed as an S-Corp. This is known as a Qualified Subchapter S Subsidiary, aka “Child S-Corp”, aka “QSUB” or “QSSS”. The Child S-Corp is treated as a division of the parent.

If that’s you, want to make yourself aware of what the IRS considers to be reasonable cause for filing your Form 2553 late. It can be a little confusing figuring out where you’re supposed to file Form 2553, especially because that information changes regularly. Part III applies to Qualified Subchapter S Trusts– a trust with a single beneficiary whose income is distributed annually– who want to hold stock in an S corp.

Need help with an IRS Form 2553?

You want to make sure there is enough net income to justify the extra work and expense in converting to, and maintaining, an LLC taxed as an S-Corporation. Also, because of the IRS’s “60-month rule” (the inability to revoke the S-Corp election, unless the LLC meets one of two exceptions), then the LLC is forced to file as an S-Corporation for 5 years. Depending on the state where you formed your LLC, you may also need to file an S-Corp state-level tax return as well as state unemployment insurance. However, the S-Corporation still needs to file what’s known as an “informational return”.

What is Utah tax form 2553?

Form 2553, Election by a Small Business Corporation (Adobe PDF), must be filed to qualify as an S corporation. This form should also be to file shareholder consents and to select a tax year. Form 2553 should be filed with the Internal Revenue Service Center where the S corporation will file its income tax return.

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