IRS Relief Filing

Late S Corp Election

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, and most missed elections can still be saved if you move before the window closes.

Fix a missed S Corp election

Reasonable-cause statement drafted

Returns reconciled to the effective date

Rev. Proc. 2013-30

3 years and 75 days back — inside that window, retroactive relief is usually on the table.

Outside it: private letter ruling, slow and expensive. The further back you reach, the more your past filings have to back it up.

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.

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 itself, so you are not filing a separate request. You file the election with the right statement attached. The reasonable-cause statement is not a formality: a vague one gets the election kicked back, and the clock keeps running while you refile.

What You Need to Qualify

Four requirements. All four must be met. Missing any one means Rev. Proc. 2013-30 relief is off the table.

Reasonable Cause for the Late Filing

You believed it had been filed, you did not know the election was required, or the prior preparer dropped it. The statement has to be specific and tied to facts — vague ones get kicked back.

Business Run as if S-Corp Already

The business has been operated consistently with S Corp status from the intended effective date — including how income was reported. If your returns say sole prop or partnership, that gap has to be reconciled.

Normal S Corp Eligibility Met

All the standard <a href="https://www.irs.gov/forms-pubs/about-form-2553" target="_blank" rel="noopener nofollow">S Corp eligibility limits</a>: eligible owners only (individuals, certain trusts, estates), no more than 100 owners, one class of stock, and a domestic entity.

Returns Line Up With the Election

Prior-year returns for the affected periods must align with S Corp treatment. That is why the late election and the related returns are handled together, not as separate steps.

How We File a Late S Corp Election

Confirm you are inside the window

We check the intended effective date against the 3-year-and-75-day limit first, because that determines whether relief is even available. Outside the window: the answer is either a private letter ruling or a different plan entirely.

Build the reasonable-cause case

We write the statement the IRS actually accepts — specific facts, tied to what happened, without hedging — and make sure your reporting history backs it up. Weak statements are the most common reason relief is denied.

File and reconcile the returns

We file Form 2553 with the relief language, then make sure your business returns for the affected years match the election. See <a href="https://dimovtax.com/convert-llc-to-s-corp/">Convert LLC to S Corp</a> for the current-year mechanics and <a href="https://dimovtax.com/s-corp-reasonable-compensation/">S-corp reasonable compensation</a> for the salary side.

Why Businesses Trust Dimov Tax

People usually find us the week they realize the election never went through. Moving fast, with a real reasonable-cause statement, is what preserves the years.

$1.5B+

in tax savings identified for clients

63%

of clients return year after year

70+

tax and financial services under one roof

15+ yrs

of senior experience per engagement

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, and 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 and start the reasonable-cause statement, the more years you keep in reach.

Confirm the effective date first. Then we quote against the actual scope.

3 yrs + 75 days

how far back Rev. Proc. 2013-30 relief can reach from the intended effective date

The Three-Year-and-75-Day Window Is Not Flexible

Inside the window, a clean reasonable-cause filing under Rev. Proc. 2013-30 is usually accepted. Outside it, you generally need a private letter ruling — slow (months), user fee, uncertain outcome.

Two other traps: a vague reasonable-cause statement gets the election kicked back, and the clock keeps running while you refile. And if the business wasn't operated consistently with S corp status from the intended effective date, that inconsistency is what the IRS uses to deny relief.

Vague cause

= election kicked back. Clock keeps running while you refile.

PLR fallback

outside the window: slow, user fee, uncertain — plan around it

Consistent operation

business must have been run AS IF the election were already in place

Sources: IRS Instructions for Form 2553; Revenue Procedure 2013-30

Signs You Should File Now, Not Later

A good fit if:

You meant to elect S Corp status but the form never went in
Your prior preparer said it was handled and it turns out it wasn't
You have been reporting as an S corp on the 1120-S with no formal election on file
You are within 3 years and 75 days of the effective date you want
You are willing to reconcile the affected years' returns to match the election

First time considering an S election? Start with LLC taxed as S corp to check fit. Ready to convert current-year? See Convert LLC to S corp. Salary side: S-corp reasonable compensation.

Fix a Missed 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.

"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

The sooner we start, the more years you keep in reach. Confidential. CPA firm doing the filing.

Reviewed by George Dimov, CPA

Founder of Dimov Tax

15+ years advising on S corp elections and IRS relief procedures.