Do I need S-Corp Acceptance Letter (CP261) before filing corporate 1040?

[kronion0]

I started a company though BizFilings in late 2019.  The relevant dates are: 

- IL SOS Acceptance 11/26/19

- Federal EIN received 12/2/19

- Form 2553 sent to IRS 12/2/19

According to the BizFilings rep, S-Corp acceptance letters (CP261?) are taking like 90+ days.  I did my first-run of my personal taxes with estimates, and 2019 is going to be a big refund for me.  My books are pretty easy for the (unapproved) S-Corp, but I can't file my personal 1040 until I have the K-1 from the company.  Other than the obvious what-if-the-IRS-rejects-your-2553 risk, can I transmit my corporate 1040 and print my K-1 before I receive back the approval via a CP261?  The business is starting to lift off the ground, and my personal refund would give me a much needed injection of capital.

I am the only shareholder.

[AlanT222]

If you are going to file a corporate return, you must file Form 1120S.  

Form 1120S (U.S. Income Tax Return for an S Corporation) is available in TurboTax Business.

When you first start a return in TurboTax Business, you'll be asked to select the type of return you want to prepare. Select Business return and then select S Corporation to add Form 1120S to the return.

You will select 1st year filing.  

[kronion0]

Thank you for correcting my understanding of which form it is. To confirm, I can send this, electing it as an S corporation even before I have received approval from the IRS?

[LindaB1993]

The Form 2553, electing Sub-S election can be faxed to IRS for approval. The Fax Number is 855-887-7734

If the entity is not recognized in the IRS database as a Sub-Chapter S Corporation, you can mail in the Form 1120-S along with a copy of the Form 2553 requesting the election.  It takes 2-3 weeks for an approval of the Form 2553. After the approval is received, the Corporate Return can be electronically filed.

[Inthezone4U]

Why would one mail in the 1120S along with the 2553 and then e-file? Once the forms are mailed, would the IRS process the 1120S mailed copy?

[kronion0]

That is not the question I was asking. I mailed in my 1120S and didn't efile. The question I was asking was whether there was any issue with filing my taxes as an approved small business when I had not received the confirmation letter from the IRS that my S Corporation application has been accepted.

Ultimately, I faxed them a letter a year later and finally got a letter approving my application. Now my wife has a small business, and we are in the same pickle, but at least I know I can file using 1120s even before receiving confirmation that my small business application was approved.

[JeffreyR77]

You should not file your Form 1120S or personal 1040 with tax advantages of a new S-Corporation prior to receiving IRS acceptance of your S-Corporation. 

Your can register your S-Corporation with your state and operate it as if it were a S-Corp. 

However to file tax returns prior to receiving notification of acceptance is premature. 

You can file extensions to file your tax returns until you receive your acceptance notification.

[carinbowman]

I'm so glad you were able to get a response! I've filed Form 2553 as well and have not received a response. Will you please let me know the fax number you sent the request letter to? And in general, what the letter said? Thank you so much! Carin