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Late S Corp Election

A specialized matter handled by a CPA firm.

Direct representation, not advice from the sidelines.

Short answer

If you missed the S Corp election deadline, the IRS lets you file a late S Corp election and still get the status backdated, as long as you qualify and act within a set window.
The window is three years and 75 days from the date you wanted the election to start. Past that, retroactive relief is generally off the table.
To qualify, you need a reasonable cause for filing late, and you must have been running the business as if the election were already in place.

Maybe you meant to elect S Corp status months ago and the form never went in. Maybe your last preparer said it was handled and it was not. The deadline passing does not automatically cost you the year. The IRS has a standing relief procedure for exactly this, and most missed elections can still be saved if you move before the window closes.

What is a late S Corp election?

The normal deadline to elect S Corp status is about two months and 15 days into the tax year you want it to apply to. When that date passes, you can still file Form 2553. You ask the IRS to treat the election as if it had been timely, using the relief in Revenue Procedure 2013-30. That relief is built into the form, so you are not filing a separate request. You file the election with the right statement attached.

The three-year-and-75-day window for late relief

The IRS requires the late election to be requested within three years and 75 days of the effective date you put on the form. Inside that window, a clean reasonable-cause filing is usually accepted. Outside it, you generally need a private letter ruling, which is slow and carries a user fee.

The further back you reach, the more your past filings have to back it up.

What you need to qualify for a late S Corp election

A reasonable cause for the late filing, for example that you believed it had been filed, or did not know the election was required.
A business that has been run consistently with S Corp status from the intended effective date, including how income was reported.
All the normal S Corp eligibility met: eligible owners only, no more than 100, one class of stock, a domestic entity.
Returns that line up with the election, which is why the late election and the related returns are handled together.

The reasonable-cause statement is not a formality. A vague one gets the election kicked back, and the clock keeps running while you refile.

How we file a late S Corp election

We confirm you are inside the window

We check the intended effective date against the three-years-and-75-days limit first, because that determines whether relief is even available.

We build the reasonable-cause case

We write the statement the IRS actually accepts and make sure your reporting history backs it up.

We file and reconcile

We file Form 2553 with the relief language, then make sure your business returns for the affected years match the election.

Why businesses trust Dimov Tax

People usually find us the week they realize the election never went through.

Received a letter from the IRS that some old tax returns were filed incorrectly. They solved my problem quickly and completely.

Bernie, Google review

After some complicated tax filings and mistakes made by our previous tax preparer, working with the team was a breath of fresh air.

Anushka, Google review

Late S Corp election cost

Cost depends on three things:

How many tax years the late election reaches back.
Whether returns for those years need to be amended or filed to match.
How much reconstruction the reasonable-cause statement needs.

We quote after we confirm the effective date you are aiming for and the years involved.

The sooner we confirm the effective date you need and start the reasonable-cause statement, the more years you keep in reach.

Make sure to reach out as soon as you have the question. Don't wait until the questions pile up. Get all your questions answered right away.

George Dimov, CPA, founder of Dimov Tax-

Late S Corp Election

Tell us the date you wanted the S Corp status to start and which years are involved, and we will tell you whether relief is still on the table and what it takes.

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