You MUST read the Instructions for Form 2553 (12/2020) CAREFULLY because there are many rules.
General Relief Rules for S Corporation Elections
The following requirements must be met to qualify for late S corporation election relief by a corporation or entity classified as a corporation:
- The entity intended to be classified as an S corporation, is an eligible entity, and failed to qualify as an S corporation solely because the election was not timely;
- The entity has reasonable cause for its failure to make the election timely;
- The entity and all shareholders reported their income consistent with an S corporation election in effect for the year the election should have been made and all subsequent years; and
- Less than 3 years and 75 days have passed since the effective date of the election (See the Exception to the 3 Years and 75 Day Rule section below).
In addition, if the electing entity is requesting a late corporate classification election to be effective on the same date that the S corporation election was intended to be effective, the requesting entity must also meet the following additional requirements:
- The entity is an eligible entity as defined in Treas. Reg. § 301.7701-3(a);
- The entity failed to qualify as a corporation solely because Form 8832 was not timely filed; and
- The entity timely filed all required federal tax returns consistent with its requested classification as an S corporation.
See Rev. Proc. 2013-30.
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