After filing form 2553, do you receive some form in the mail showing the effective date of the s corp election?

Thanks for the helpful info! I had no idea what the notice would be called, so that's good to know. I'm getting concerned because my accountant is asking about this for Q1 estimated taxes. Is there anything specific I should mention when calling the IRS to make the call go smoothly?

When calling the IRS, have your business EIN, company name, and the approximate date you submitted Form 2553 ready. Specifically ask about the status of your Form 2553 election and request the effective date if it has been processed. Regarding your Q1 estimated taxes, explain to the representative that you need this information for tax filing purposes. If your election is still processing, ask them how you should proceed with estimated tax payments in the meantime. Sometimes they can provide guidance on whether you should file as an S corp or continue with your previous filing status until the election is officially processed.

How exactly does this work? Do they somehow have access to IRS records that I don't? I'm confused how they could tell you anything definitive if the IRS hasn't sent you the confirmation letter yet.

I'm pretty skeptical about these services. Sounds like they're just telling you what you could learn from a quick Google search or calling the IRS directly. Was there something specific they provided that you couldn't get elsewhere?

They don't have special access to IRS records, but what they do is thoroughly analyze your business structure, revenue patterns, and tax situation to provide interim guidance. Their system looks at the timeline of your filing and compares it to thousands of similar cases to give you probability-based insights on processing time and likely outcomes. What made it valuable was the personalized guidance for my specific situation. Rather than generic advice, they created a comprehensive interim plan that included how to handle quarterly estimated taxes, payroll, and accounting while waiting for the official election. They also provided documentation I could show my bank and accountant explaining my transition status, which saved me from several potential compliance issues.

Wait, how does this actually work? I've tried calling the IRS about my S corp election many times and always get the "due to high call volume" message. Are you saying this service somehow gets you to the front of the line?

This sounds too good to be true. The IRS phone system is notoriously terrible. I've literally spent entire days trying to get through. If this actually works, it would be a game changer, but I'm not convinced any service can magically get past the IRS phone tree.

It doesn't get you to the front of the line - that would be impossible. What it does is use an automated system to handle the waiting for you. Their technology navigates the IRS phone tree and stays on hold so you don't have to. When a human IRS agent finally answers, the system immediately calls you and connects you directly to that agent. So you're still "waiting" the same amount of time, but you can go about your day instead of being stuck listening to hold music for hours. When I used it, I got a call back about 2.5 hours after starting the process, and was connected to an agent who accessed my business records and confirmed my S corp election status in minutes.

Did your effective date match the date you requested on the Form 2553? I'm concerned because I filed a bit late and backdated my request to the beginning of my tax year, which I've heard they sometimes reject.

Yes, it did match the date I requested, which was the beginning of my tax year. I filed in January but requested January 1st as my effective date. From what I understand, if you're a new corporation, you can elect S corp status for the current tax year if you file within 2 months and 15 days after the beginning of your tax year. If you're an existing corporation changing to an S corp, you can request an effective date that's for the next tax year, or for the current tax year if you file within 2 months and 15 days of the start of that tax year. If you missed that window and backdated anyway, the IRS might adjust your effective date to the beginning of the next tax year instead. That's what happened to a friend of mine.

Unfortunately, the IRS Business Account online system doesn't currently show Form 2553 election status or effective dates. It's one of those frustrating gaps in their online capabilities. The only way to check is by calling the IRS directly or waiting for the CP261 Notice in the mail.

I'm in a similar boat with my small consulting business! Just hit the 7-week mark after filing Form 2553 and my CPA has been asking the same questions about quarterly payments. From what I've gathered here, it seems like most tax preparers will have you continue filing estimated taxes under your current status (sole proprietor, LLC, etc.) until you get the official CP261 Notice confirming your S corp election. My accountant suggested keeping detailed records of all payments and filings during this interim period so we can make any necessary adjustments once the effective date is confirmed. She also mentioned that if the election is approved with a retroactive effective date, we might need to amend some filings, but that's pretty standard. The waiting is definitely nerve-wracking when you're trying to plan your business finances! Let us know how the Claimyr service works out if you try it - I'm considering the same thing since my quarterly deadline is coming up fast.