Incorporated S-Corp in New Mexico this last year but didn't file form 2553. We didn't make any income on our business, as we're waiting for market. How to file 1120?

[juanhblanco]

Can I file form 2553 with the 1120 and be covered for this tax year as well as next year? We didn't make income but we invested over $20,000 into the business equipment.

[AmyT · Accepted solution]

There is relief available for you, since you intended to be taxed as an s-corporation but inadvertently failed to file Form 2553 to make the election.

You will file the corporate return using Form 1120-S, with Form 2553 attached.  (Note:  You will need to file a paper return this year in order to make the election).

When you file the return, you will need to write the following statement at the top of Form 2553:   "FILED PURSUANT TO REV. PROC. 2013-30".  You will also attach a statement indicating that the corporation either had reasonable cause (and spell out the circumstances) or inadvertently failed to file Form 2553 in a timely manner. Both Form 2553 and the attached statement must be signed by every shareholder. 

This article (https://www.thebalance.com/forming-an-s-corporation-3193223) provides a lot of good information on the subject.