"Reasonable Cause"?? for failure to timely file Form 2553 to elect S-Corp status?
What is an acceptable "reasonable cause" for failure to timely file Form 2553 to elect S-Corp status for the current tax year?
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RandyA
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04/14/09 5:43pm PDT
Viewed by asker 10/10/09 1:08pm PDT
Viewed by asker 10/10/09 1:08pm PDT
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Jay in Georgia
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04/14/09 5:53pm PDT
Best Answer - Chosen by the Community
We just tell the truth. Either the taxpayer did his own incorporation, and we say the taxpayer was not intelligent in these matters or a lawyer ripped off the client, in which case we list the name, address and telepone number of the "professional" who was engaged to provide proper services, yet failed to do so.
10/29/10 9:47am PDT
Do you know if the taxpayer can file the late election during the period between when the election should have been filed and the end of the first tax year and not wait until the first tax year has ended and attach the election to his first-filed tax return (Form 1120S)? Accountant would really like to get the approval letter from the IRS now to be treated like an S corp in the first year so he can sleep at night.
10/29/10 11:50am PDT
Under a particular revenue procedure, it has to be filed before the filing of the initial tax return(including extensions), and you can usually get approval. You can search for that Rev Proc at www.irs.gov.
Filing now for 2010 would be considered before the due date of the 2010 return.
10/29/10 12:28pm PDT
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Being naive and ignorant. That is what I did for one of my corporation and the IRS accepted it. They have a corporation mill form their corp. The mill gave them the kit and that's the end of it. First year, they send in their tax return. Second year, my office e-filed and popped a reject. The rest is history.
