Our company has been an S-Corp since 1994. Why is TurboTax Business having us fill out Form 2553? Looking at the IRS instructions for Form 2553 shows it only applies to corporations or entities electing to become an S-Corp. We have used TurboTax Business since 2000 and this is the first time we have been asked to do this.
What you are experiencing is almost certainly an anomaly. I can only suggest going through all of the points and questions in About Your Business to determine if anything is awry.
Otherwise, you can contact Support (link below) during regular business hours.
https://ttlc.intuit.com/community/using-turbotax/help/what-is-the-turbotax-phone-number/00/25632
What you are experiencing is almost certainly an anomaly. I can only suggest going through all of the points and questions in About Your Business to determine if anything is awry.
Otherwise, you can contact Support (link below) during regular business hours.
https://ttlc.intuit.com/community/using-turbotax/help/what-is-the-turbotax-phone-number/00/25632
I will use the link tomorrow to check further into this issue. In the meantime, just to expound on what I have: I got nothing in the step-by-step questions about Form 2553. Only when I was doing Error Check did it bring up the form and it said I had 12 issues; which were my state of incorporation, date of election, selected tax year, number of shares % owned, date acquired, and the tax year ending date for our three officers.
Did you find out how to fix it?
I am having the same problem and I called Turbotax and they couldn't help me.
I filled out the form, but when I filed my return (this was last year), TurboTax never asked me to sign it. They did not include it in the filing with the IRS. This is apparently a software issue that should be for new S-Corps only.
I am not certain what is occurring with Form 2553, but e-file for that form is not supported by TurboTax Business.
TurboTax wants me to include(upload) electronic copy of this form, which I already did , I sent it to IRS last year and it was accepted.
Not sure what you mean by this is an anomaly. It is happening to me too. This is my first year as an S-corp, but my Form 2553 has already been filed and excepted. Nowhere did TurboTax ask me if I needed one, yet this is what I get: "Attachment Needed - Form 2553 Since you are filing your S election when you e-file your tax return....." and it won't allow me to continue without attaching a file. This is an ERROR and needs to be fixed.
I'm having the exact same issue....wont let me efile as it states I must attach 2553, which I previously filed and was accepted by the IRS. I re-checked my Business Info and ensured it shows correct date of s election, and that it was already accepted by IRS.
Seems like another software issue by Turbo Tax.
I had the same issue , but it turned out TurboTax doesn’t require you to fill it out, just attach it
i wrote on the form that it was accepted by IRS already, just in case
I found the solution, as their questionnaire is incorrectly filling out form 1120. Go to forms, 1120-S, then check section G. If you previously filed form 2553, select NO, which should remove the prompt before filing to print/sign/attach from 2553.
Verify how you answered questions in TurboTax related to your corporation incorporated date and S-election dates.
TurboTax asks for your incorporation date and the S-Corp election date which can be different.
If your S-Corp election date is this year, TurboTax will ask if you've made the election already or not.
f not, an election can be attached to your Form 1120S when filed.
This return in this case would need to be mailed as the Form 2553 requires signatures.
The problem is that TurboTax asks you to attach this form even if you say that you already made the election
clearly this is the problem with TurboTax
@adegty I have a copy of the program and cannot reproduce the result you are seeing.
I would suggest that you go back though the Step-by-Step and ensure your answers were accurate.
Further, I would suggest that you enter Forms Mode and review your Information Worksheet as well as page 1 of your 1120-S.
I am having the same issue outlined above.
I have gone back through the Business Information sections multiple times, as well as the forms Mode to review the form information.
In order to recreate the issue. Create a Business that has formed date in 2020, for me this was September 2020.
As well as S Corp election date the same as the formed date above.
This causes the 1120S Section G to be checked Yes correctly, but as the form indicated you should not have to send in the 2553 form if you already did so.
I can't seem to find a worksheet/information sheet in the forms that has the "Yes, it already made the S Corp election" answer. This is where I think the program is having the issue, it thinks that any new S corp election needs to file the 2553 form regardless of answering the question, say it was already elected.
Good find! I actually AM electing to be an S corp beginning with this tax year, though. So I kept it checked, and I attached the confirmation instead of Form 2553. Thank you!
Dear @JeffreyR77 and @Anonymous_
You might read the other filers who have clearly followed the step-by-step instruction as you showed us and told the program that they have elected to be treated as an S-Corp already, but TurboTax Business insisted on having them attach Form 2553 to their main return (Form 1120S). I'm having exactly the same issue and can't get TurtoTax Business to let me go beyond this point without attaching a Form 2553, which I already filed last year when I formed my S-Corp (one has to file within a couple of months or so).
The problem is caused by TurboTax Business mistakenly marking "Yes" on Section G of form 1120S. As @mjolley said, manually change this to "No" got me through this problem.
It's definitely something TurboTax Business is doing wrong and should be fixed.
Regards,
TC