ILLMAS Posted July 14, 2023 Report Share Posted July 14, 2023 Has anyone been successful in making a late election to become a S-Corp? I have partnership client that would like to do a retro election to January 1, 2022. I am aware this goes against a timely filed form 2553 and this a last minute decision by the client. Thanks Quote Link to comment Share on other sites More sharing options...
Lee B Posted July 14, 2023 Report Share Posted July 14, 2023 I did one over ten years ago but it was only 5 or 6 months late. 1 Quote Link to comment Share on other sites More sharing options...
schirallicpa Posted July 14, 2023 Report Share Posted July 14, 2023 Just faxed one in - I'll let you know. 2 Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted July 17, 2023 Report Share Posted July 17, 2023 On 7/14/2023 at 7:45 AM, ILLMAS said: partnership client that would like to do a retro election to January 1, 2022. If they have been filing as a partnership, then I believe the answer is no. On the other hand, if they had been filing 1120-S and had "reasonable cause" for failure to file a timely election then they should be good. Your research should turn up a rev. proc. with details. 2 Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted July 17, 2023 Report Share Posted July 17, 2023 So they have not yet filed for 2022? That might change my answer from above. But have the partners been taking draws or GPs instead of salaries? 2 Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted July 17, 2023 Author Report Share Posted July 17, 2023 11 hours ago, DANRVAN said: If they have been filing as a partnership, then I believe the answer is no. On the other hand, if they had been filing 1120-S and had "reasonable cause" for failure to file a timely election then they should be good. Your research should turn up a rev. proc. with details. I have looked over the rules, I have not seen a mention of a partnership not being able to file a late election, can you point me to the source. Thanks Quote Link to comment Share on other sites More sharing options...
Lee B Posted July 17, 2023 Report Share Posted July 17, 2023 I think what Danrvan is asking is. 'Since January 1st 2022 have their legal, accounting and payroll activities been handled as a Partnership or as an S Corporation?" 1 Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted July 17, 2023 Author Report Share Posted July 17, 2023 35 minutes ago, cbslee said: I think what Danrvan is asking is. 'Since January 1st 2022 have their legal, accounting and payroll activities been handled as a Partnership or as an S Corporation?" Ah, as a partnership. Quote Link to comment Share on other sites More sharing options...
WITAXLADY Posted July 19, 2023 Report Share Posted July 19, 2023 it is worth a try.. I have had success D Quote Link to comment Share on other sites More sharing options...
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