Discussion:S- Election

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Discussion Forum Index --> Tax Questions --> S- Election

Chucknewberry (talk|edits) said:

3 January 2007
Has anyone ever filed an S-Election under Rev Proc 97-48? I have client who erroneously never filed a 2553 but did file S-Corporation tax returns for the last 3 years and were never notified of this error. Does this Rev Proc give relief?

Mtmckeecpa (talk|edits) said:

4 January 2007

I have never filed for relief under 97-48 but if you look at Sec 4.01 under 97-48 and your client meets those 4 conditions it would seem that your client would qualify for relief.

If that does not work you can still ask for a letter ruling granting relief.

Mauro (talk|edits) said:

4 January 2007
and if do so 99% of the time the IRS will approve the relief.

Bottom Line (talk|edits) said:

4 January 2007
Have done several and never had a problem. Be sure to use the exact wording in the Rev Proc

Chucknewberry (talk|edits) said:

4 January 2007
Thank for all the advice. I think I will try the Rev Proc first and then fall back to the letter ruling if necessary.

Bottom Line (talk|edits) said:

5 January 2007
Looked back at the entire post. You say they filed 1120S for 3 years and were never notified of a problem. Did you suddenly get a notification? If IRS has been accepting these and has never sent a notification, I'd assume (I know - bad word) that the 2553 had been filed but the client forgot about it. IE - let sleeping dogs lie.

FlaGators (talk|edits) said:

8 January 2007
Could a corporation that has been filing C-Corp returns for a number of years get relief for late filing of 2553? In other words, they wanted to convert to S-Corp in '06 but did not file 2553 in time. From what I read in the Rev Proc I'm thinking "no".

EAPHD (talk|edits) said:

8 January 2007
That Rev Proc is only applying to the situation that the form 2553 is sending to IRS late (usually after 3 months)after the corporation is established. In this situation, it seems that IRS accepted S Corp as filling in the first year. Who knows it might create some problems in the future. Should check with the IRS and seek their opinion.

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