Urgent - Scrop situation

[Unregistered]

Client, doctor, received notice that IRS has not processed 2004 Tax return as IRS has no 2553.

Here are some facts:

Date Incorporated: 09/04/2002
S corporation Election: 09/04/2002 (That was on his 1120S return!)

Client filed, through his previous accountant, 1120S for 2002, 2003, & 2004 and all personal returns on time.

Client thought that he was always scorp until he got this notice.

It is already 24 months since 09/04/02.

He will not qualify under 2003-43 (it is only upto 24 months).
Can he Qualify under Rev. Procedure 97-48?

IRS is also indicating that if he does not qualify then "ALL" returns have to be amended and also all personal returns will then have to be amended.

Last resort is Private ruling (Expensive) and may be time consuming.

Also, what can you put down as reasonable cuase?

Thanks for your help.

[Armando Beaujolais]

Client, doctor, received notice that IRS has not processed 2004 Tax return as IRS has no 2553.

Here are some facts:

Date Incorporated: 09/04/2002
S corporation Election: 09/04/2002 (That was on his 1120S return!)

Client filed, through his previous accountant, 1120S for 2002, 2003, & 2004 and all personal returns on time.

Client thought that he was always scorp until he got this notice.

It is already 24 months since 09/04/02.

He will not qualify under 2003-43 (it is only upto 24 months).
Can he Qualify under Rev. Procedure 97-48?

IRS is also indicating that if he does not qualify then "ALL" returns have to be amended and also all personal returns will then have to be amended.

Last resort is Private ruling (Expensive) and may be time consuming.

Also, what can you put down as reasonable cuase?

Thanks for your help.

Check out TTB page 19-4. Under Rev. Proc. 97-48 automatic relief is available if the S corp and shareholders have been filing as an S corp and the IRS didn't make any noise about it within six months after the first S corp return was filed. Procedures for filing are laid out.

[Unregistered]

Check out TTB page 19-4. Under Rev. Proc. 97-48 automatic relief is available if the S corp and shareholders have been filing as an S corp and the IRS didn't make any noise about it within six months after the first S corp return was filed. Procedures for filing are laid out.

Thanks!

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[Matt Sova]

Also

You could check out code section 1362(b)(5). I do not know if it has been superceded by the Rev Procs, but I used that quite a few years ago for a client that thought their atty filed the paperwork and it worked out fine.

[rosieea]

Helpful IRS Contacts

Here are the names & phone number of some folks in Entity Control in Utah:

[names and numbers deleted]

They are very helpful with S Corps election problems, and I'd recommend contacting one of them.

[Matt Sova]

Nice

Great reference Rosie.