Filing Form 2553 for S Corporation Election
Form 2553 helps corporations avoid double taxation. This form should be submitted within 2 months and 15 days after the tax year begins for the election to take effect.
Benefits of Electing S Corporation Status:
- Tax savings and avoidance of double taxation
- Eligibility criteria must be met as per IRS guidelines
Filing Options and Instructions
- Filing Options: Mail or fax only; no electronic filing available
- List of Required Information: Names and addresses of all owners/shareholders, Social Security Numbers, consent statement, and stock ownership details
Approval and Subsequent Procedures
- Approval and Validity: Once approved, the S Corp election remains valid annually
- No Annual Refiling: Only the annual Form 1120-S tax return is required, not Form 2553
Other Pertinent Information
- Electronic Filing: Not permissible; original copy must be mailed or faxed
- Approval Duration: Typically takes 45 to 60 days for IRS approval