Vityaba Posted March 20, 2013 Report Share Posted March 20, 2013 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? Quote Link to comment Share on other sites More sharing options...
Lynn EA USTCP in Louisiana Posted March 20, 2013 Report Share Posted March 20, 2013 mail the extension with a copy of the efile rejection notice. Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted March 20, 2013 Report Share Posted March 20, 2013 And ask the client for a copy of the letter from IRS accepting his S status. I had the same error message on a return this year, and the client was actually able to bring in the copy of the letter. Did not let us e-file but we sent the paper return with a copy of the rejection and the letter. Hope that next year the e-file will work. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted March 20, 2013 Report Share Posted March 20, 2013 The other option, if he can not come up with the letter, is to get the extension for it as a C Corp. Quote Link to comment Share on other sites More sharing options...
joanmcq Posted March 20, 2013 Report Share Posted March 20, 2013 That's what I had to do for my first year S. Quote Link to comment Share on other sites More sharing options...
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