My client told me that he registered a new business in 2012 and filed 2553 to elect S-Corp treatment.
He asked me to file an extension. I e-filed it on March 15th and it gets rejected with a message something like this "the entity type selected should match IRS records..." meaning that it's not S-Corp in the IRS system
My client still wants to treat the corporation as S corp and I know we can file form 2553 with "FILED PURSUANT TO REV. PROC. 2003-43" on the top if it goes with the initial tax return.
A question - if we file 1120S with 2553 in May, will IRS fine $190/month/shareholder for filing the return late? Does anyone have experienced something like that?
