Lion EA Posted July 7, 2009 Report Share Posted July 7, 2009 I tried searching on this and variations of it and of Form 2553 but get thousands of posts containing "late" or another part of the phrase. Does someone remember a thread regarding a late election, maybe one you took part in and could search by posting name? Thanks for any leads. Quote Link to comment Share on other sites More sharing options...
TAXBILLY Posted July 8, 2009 Report Share Posted July 8, 2009 What questions did you have re late S-corp elections? taxbilly Quote Link to comment Share on other sites More sharing options...
Lion EA Posted July 8, 2009 Author Report Share Posted July 8, 2009 What questions did you have re late S-corp elections? taxbilly Client said his lawyer formed an S-Corp for them effective 1 January 2008. I prepared Form 1120-S. IRS writes that they cannot process Form 1120-S because no Form 2553 was filed. Husband and wife shareholders did receive their K-1s and did report K-1 information on their joint personal tax return for 2008. Do I use Revenue Procedure 2007-62 for an entity that has not yet filed a tax return -- they mailed it in, but the IRS did not process it? Or, Revenue Procedure 2003-43? Any tips on what to include? By the way, I'm definitely blaming the lawyer! Quote Link to comment Share on other sites More sharing options...
Lion EA Posted July 8, 2009 Author Report Share Posted July 8, 2009 BUMP Client said his lawyer formed an S-Corp for them effective 1 January 2008. I prepared Form 1120-S. IRS writes that they cannot process Form 1120-S because no Form 2553 was filed. Husband and wife shareholders did receive their K-1s and did report K-1 information on their joint personal tax return for 2008. Do I use Revenue Procedure 2007-62 for an entity that has not yet filed a tax return -- they mailed it in, but the IRS did not process it? Or, Revenue Procedure 2003-43? Any tips on what to include? By the way, I'm definitely blaming the lawyer! Quote Link to comment Share on other sites More sharing options...
TAXBILLY Posted July 8, 2009 Report Share Posted July 8, 2009 I always make it a practice to get a copy of the 2553 for my records. You may be surprised (or maybe not) of the countless times clients say they did something and then later profess ignorance. What did the IRS letter say? I would file the 2553 with a note that says what happened (or didn't). taxbilly Quote Link to comment Share on other sites More sharing options...
Lion EA Posted July 9, 2009 Author Report Share Posted July 9, 2009 IRS letter suggested RP 2003-43 as a relief, requiring 1.) Form 2553 with signatures from everyone 2.) statement of reasonable cause, blah, blah 3.) statement from all shareholders attesting that they reported income, etc. 4.) declaration by officer under penalties of perjury, etc. all of which I'll draw up for client. Anyone have any good boilerplate paragraphs you've used successfully? Just really mad at the lawyer who insisted company form an S-corporation to the (former LLC) partners and to me and then did not fill out the final form needed to actually BE an S-corporation. I was suggesting a C-corporation to the lawyer so the $25,000+ health insurance could be a fringe benefit instead of reported on their W-2s (and they could have a broader range of future investors and they could have more than one class of stock and...), but the lawyer insisted he should form an S-corporation for them. Lawyer had plenty of opportunities to tell me that he was NOT going to file Form 2553 and that someone else would need to do that piece of the package. Quote Link to comment Share on other sites More sharing options...
mircpa Posted July 9, 2009 Report Share Posted July 9, 2009 IRS letter suggested RP 2003-43 as a relief, requiring 1.) Form 2553 with signatures from everyone 2.) statement of reasonable cause, blah, blah 3.) statement from all shareholders attesting that they reported income, etc. 4.) declaration by officer under penalties of perjury, etc. all of which I'll draw up for client. Anyone have any good boilerplate paragraphs you've used successfully? Just really mad at the lawyer who insisted company form an S-corporation to the (former LLC) partners and to me and then did not fill out the final form needed to actually BE an S-corporation. I was suggesting a C-corporation to the lawyer so the $25,000+ health insurance could be a fringe benefit instead of reported on their W-2s (and they could have a broader range of future investors and they could have more than one class of stock and...), but the lawyer insisted he should form an S-corporation for them. Lawyer had plenty of opportunities to tell me that he was NOT going to file Form 2553 and that someone else would need to do that piece of the package. Lion I dont think Revenue Procedure 2003-43 is any more acceptable. It should now be filed under Revenue Procedure 2004-48. Double check with IRS Quote Link to comment Share on other sites More sharing options...
Lion EA Posted July 9, 2009 Author Report Share Posted July 9, 2009 Thanks. Good point. Now, I'm definitely calling the Hotline Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.