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Form 2553, Acceptance Date

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    #1

    Form 2553, Acceptance Date

    New Customer coming by. He sent in the Form 2553, not sure if he filled it our or lawyer did. Received letter from IRS with acceptance for 2009 tax year. He has been operating all 2008 as S-Corp. How can this be changed? I am assuming a letter to the IRS explaining it should be 2008 not 2009. I don't see anything else to make a change like that or I am missing it.

    Thanks
    Dany
    Tags: None
    #2
    C Corp

    Dany, someone has dropped the ball before handing it off to you.

    With no other information except what you've told us, I don't believe IRS will allow your client to file as an S corp for 2008. Of course, there could be another earlier letter, but I think this guy's previous tax advisors have left him with no option other than filing as a C Corp for 2008.

    Of course this means the possibility of dividends for 2008, plus the grisly possibility of eternal reporting of Earnings and Profits. But so be it.

    TTB has a section about how to rectify a late 2553 filing, but there comes a point in time where even that won't help.
    Last edited by Nashville; 08-25-2008, 12:40 PM.

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      #3
      File as SCorp

      Dany - I think the client is OK. I'd get a POA and call the tax practitioner line to see how to change the effective date. 866 860 4259. This is just an admin error and can be corrected.

      FYI: We can now file a 2553 with an initial 1120S return and an explanation for late filing.

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        #4
        Ms. Hoffman

        Thank you Ms Hoffman for setting this straight.

        Dany, apologize if I've given you bad information...my background comes from previous history, which may be somewhat outdated.

        Also, I didn't think this was an administrative error (which I agree could be easily rectified). I thought the attorney just simply waited too long to send it in and didn't know how to observe the late process.
        Last edited by Nashville; 08-25-2008, 02:47 PM.

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          #5
          Thats okay. Thank you guys for answering. I called Tax Prac Hotline while he was here. Thankfully it was accepted for 2008. IRS said it was changed a month later. I don't know. Customer had letter that said 2009. I ask that they resend the letter for the customer's records.

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            #6
            Nash - My background comes from previous mistakes I've either made or fixed

            Good news, Dany. The IRS seems to be pretty lenient about form 2553, especially for a new business.

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