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Oliver Schulz

Do you always receive acceptance letter for SCorp election? How to confirm status?

Is anyone else confused about the whole S Corp election acceptance process? I filed Form 2553 to elect S Corporation status for my small business about 4 months ago, but I still haven't received any kind of acceptance letter from the IRS. I was under the impression they always send confirmation, but now I'm getting worried. My accountant says it's fine and that sometimes the IRS just processes it without sending formal acceptance letters, especially if everything on the form was correct. But I'm paranoid because I've switched my payroll setup and tax planning based on having S Corp status. Has anyone else gone through this? If you don't get an acceptance letter, how do you know for sure your S Corp election went through? Is there some way to confirm with the IRS besides sitting on hold for 3 hours?

While it's common to receive an acceptance letter for your S Corporation election (Form 2553), it's not guaranteed that you'll get one. The IRS doesn't always send these confirmation letters, especially during busy processing periods or if they're backed up. You can verify your S Corp status in a few ways. First, call the IRS Business & Specialty Tax Line at 800-829-4933. Yes, wait times can be long, but they can confirm your election status. Second, you can file Form 8821 (Tax Information Authorization) to authorize your accountant to check on your behalf. Another option is to look at how the IRS processes your tax returns. If they accept your 1120-S (the S Corporation tax return) without issue, that's a good indication your election was approved. Many businesses operate for years without ever receiving the formal acceptance letter.

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Thanks for the info! Do you know approximately how long it should take for the IRS to process the S Corp election? I filed mine about 6 weeks ago and wondering if I should be concerned yet. Also, would they notify you if they rejected it or do they just leave you hanging?

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The normal processing time for S Corp elections is typically 60-90 days, so at 6 weeks you're still within the normal timeframe. I wouldn't be concerned yet. If the IRS rejects your S Corp election, they will definitely send you a rejection notice explaining why it was denied and giving you information about how to appeal if you disagree. They won't just leave you hanging - you'll either eventually receive an acceptance letter, a rejection notice, or (sometimes) nothing if it was accepted without issues.

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After going through this exact headache last year, I found this amazing service called taxr.ai (https://taxr.ai) that saved me so much stress. I was in your same position - filed my 2553 and heard nothing for months. I uploaded my documentation to taxr.ai and they analyzed everything, confirmed my filing looked correct, and even gave me the exact script to use when calling the IRS to check on my status. The best part was they could tell from my documents that I had actually made a small error on my tax basis reporting that might have caused issues down the road. They even helped me understand how to fix it before it became a problem. Seriously made the whole S Corp election process so much clearer.

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That sounds interesting but how does it actually work? Do they have real tax pros reviewing your docs or is it just some AI thing that might miss important details? I'm worried about privacy too - don't want my business info floating around.

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I've been burned by these "tax help" services before. How can they possibly know if your S-Corp was accepted if the IRS doesn't even tell you? Sounds like they're just guessing or telling you what you want to hear.

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It uses both AI and tax professionals. You upload your documents, their system does an initial analysis to identify potential issues, and then actual tax pros review anything flagged as concerning. They found specific issues in my operating agreement that would have conflicted with S Corp requirements - stuff a pure AI system probably wouldn't catch. Regarding knowing if it was accepted, they don't claim to know for certain - they analyze your filing for potential rejection reasons and help you create an action plan. They helped me draft a follow-up letter to the IRS that actually got a response. Their privacy policy is solid too - bank-level encryption and they don't store your docs longer than needed.

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I have to eat my words about taxr.ai. After being skeptical in my previous comment, I decided to try it anyway since my S Corp situation was driving me crazy. Uploaded my 2553 and related docs, and they spotted two issues I had no idea about - my fiscal year selection was inconsistent with my operating agreement, and I had a provision that could have disqualified my S Corp status. The guidance was actually really specific to my situation, not generic advice. When I called the IRS using their recommended approach, I got confirmation my election was being processed. Would've been rejected otherwise. Kind of amazed how well it worked.

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Just want to share something that saved my sanity during this process. After waiting 5 months with no S Corp confirmation letter, I tried calling the IRS dozens of times but could never get through. Then I found Claimyr (https://claimyr.com) - they have this system that basically waits on hold with the IRS for you and calls you back when an actual human picks up. I was super skeptical but there's a demo video showing how it works: https://youtu.be/_kiP6q8DX5c. I tried it and got a call back in about 40 minutes with an IRS agent on the line! The agent confirmed my S Corp election had been accepted 3 months earlier but the letter was never generated due to a system glitch. Problem solved in one call instead of weeks of frustration.

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Wait, how does this actually work? They just call the IRS for you? Couldn't we just have someone else call on our behalf anyway?

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This sounds like total BS. You expect me to believe there's a magical service that somehow gets through IRS phone lines when millions of people can't? And they just happen to be promoting it here? Yeah right.

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It's not that they call the IRS for you - you initiate the call through their system, and their technology navigates the IRS phone tree and waits on hold. When an agent picks up, their system connects the call to your phone. You're the one who actually talks to the IRS agent, so there are no authorization issues. It's basically just outsourcing the hold time. And to the skeptic - I get it, I was super doubtful too. But it literally just automates the hold process. The IRS doesn't know or care how you managed to stay on hold - they just know someone waited through their queue. Nothing magical about it, just clever use of phone systems.

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I need to apologize for my skeptical comment above. After another frustrating morning trying to reach the IRS about my S Corp status, I tried Claimyr out of desperation. Not only did it work exactly as described, but I got connected to an agent in 27 minutes (after previously trying for DAYS). The IRS agent confirmed my S Corp election had been processed and approved two months ago! They said due to backlogs, many acceptance letters are delayed or sometimes not sent at all. She even gave me a confirmation number I could reference if there were any issues when filing my 1120-S. Worth every penny just for the peace of mind.

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Something to remember with S Corp elections - if you don't hear back from the IRS, it could be because you filed late and need to request relief under Revenue Procedure 2013-30. I filed my 2553 about 4 months late, never received a confirmation letter, but included a statement with my first 1120-S explaining why I had reasonable cause for the late election. The IRS processed my S Corp return without any issues, which effectively means they accepted my late election. Sometimes silence from the IRS can actually be a good thing!

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Can you explain more about this "reasonable cause" thing? What kinds of excuses does the IRS actually accept for late S Corp elections? My accountant said I missed the deadline and I'm screwed for this year.

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For reasonable cause, the IRS is actually pretty flexible compared to other tax matters. Common acceptable reasons include: relying on advice from a qualified tax professional who made an error, misunderstanding the election requirements due to complexity, illness or absence of the person responsible for filing, or dealing with other significant business challenges when the election was due. Your accountant isn't entirely right. You can file a late S Corp election using the procedures in Revenue Procedure 2013-30, which allows relief if you file within 3 years and 75 days of the date you wanted the S Corp status to begin. Include a statement explaining your reasonable cause, have all shareholders sign consent statements, and file it with your 1120-S. Many businesses successfully get retroactive S Corp status this way.

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PSA for anyone dealing with this: I went through entire last tax year assuming my S Corp election was approved (never got a letter). Filed my 1120-S, took owner distributions, the whole setup. Then got a nasty letter saying they never processed my election and I had filing requirements for a C Corp instead! Had to refile everything. Total nightmare. My advice - ALWAYS get confirmation one way or another. Don't assume no news is good news with the IRS. Call or use one of these services people mentioned until you get actual confirmation.

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Oh no, that sounds terrible! Did you end up owing a lot more in taxes because of the C Corp status? I'm worried about the same thing happening to me.

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This is such a stressful situation that so many small business owners face! I went through something similar last year and learned that the IRS has actually been inconsistent with sending acceptance letters, especially since COVID disrupted their processing. One thing that helped me was keeping detailed records of everything - the date I mailed Form 2553, certified mail receipt, copies of all documents. When I finally got through to the IRS (took multiple attempts), having those details made the call much more efficient. Also, don't panic if you're operating as an S Corp without formal confirmation. As long as you filed the election timely and correctly, you can generally rely on that status. The key is just getting that peace of mind confirmation. The suggestions about taxr.ai and Claimyr seem worth trying if you're at your wit's end with the phone calls. One more tip - if you have a business bank account, sometimes your banker can help facilitate contact with the IRS Business Services line. They often have better luck getting through than individual taxpayers.

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Great advice about keeping detailed records! I'm curious about your mention of bankers helping with IRS contact - is that because they have some kind of special business line access, or just because they're more experienced with navigating the system? I've never heard of that approach before but it sounds promising. My relationship manager at my business bank is pretty helpful, so maybe I should ask them about it.

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I'm dealing with this exact same issue right now! Filed my Form 2553 about 3 months ago and radio silence from the IRS. What's really frustrating is that I've already started operating under S Corp status - changed my payroll, started taking reasonable salary, the whole nine yards - but without that confirmation letter, I'm constantly second-guessing myself. My CPA keeps telling me not to worry, but it's hard not to when you're making tax decisions based on an assumption. I've tried calling the IRS business line twice but gave up after being on hold for over 2 hours each time. Has anyone here had success with the written inquiry approach? I'm thinking about sending a letter to the IRS with copies of my original filing asking for status confirmation. Might be slower than calling but at least I'd have a paper trail of trying to get confirmation. Really appreciate all the suggestions in this thread - definitely going to look into some of these services if I can't get through to the IRS soon. The stress of not knowing for sure is almost worse than just dealing with whatever the actual status is!

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I totally understand your frustration! I'm actually in a very similar boat - filed my 2553 about 2.5 months ago and haven't heard anything back. The uncertainty is definitely the worst part, especially when you're making payroll and tax decisions based on assumed S Corp status. Regarding the written inquiry approach, I haven't tried it yet but I've been considering it too. From what I've read, you can send a letter to the IRS Ogden Service Center (where most business elections are processed) requesting confirmation of your S Corp election status. Include your EIN, the date you filed, and copies of your original 2553. It might take 4-6 weeks to get a response, but like you said, at least you'd have documentation that you tried to confirm. One thing that's been giving me some peace of mind is that several people in this thread mentioned that if there were problems with the election, the IRS would typically send a rejection notice rather than just staying silent. So no news might actually be decent news in this case. Still doesn't stop the anxiety though! Let me know if you end up trying the written route - I'd be curious to hear how it works out. Might save the rest of us some phone hold time!

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I can relate to this anxiety! I went through the same thing last year - filed Form 2553 in March and didn't get any confirmation until September. What finally worked for me was a combination approach. First, I documented everything meticulously like others suggested - certified mail receipts, copies of all forms, dates, etc. Then I called the IRS Business & Specialty Tax Line (800-829-4933) early in the morning around 7 AM when they first open. The wait times were much shorter then, usually 30-45 minutes instead of hours. When I finally got through, the agent was actually very helpful. She explained that they've had major processing delays and many acceptance letters aren't being sent out due to staffing issues. She confirmed my election was approved about 2 months after I filed, but the letter was stuck in their system. The key thing she told me: if your Form 2553 was filed correctly and timely, and you haven't received a rejection notice, you can generally assume it's been accepted. The IRS is required to send rejection notices if there are problems, but acceptance letters are more of a courtesy that sometimes gets missed in their backlog. For immediate peace of mind, ask for a confirmation number when you call - that way you have something concrete to reference if questions come up later. Don't let this stress consume you too much; it sounds like you did everything right!

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This is really helpful, thank you! The 7 AM calling strategy is brilliant - I never thought about timing it for when they first open. I've been trying to call in the middle of the day when everyone else is probably doing the same thing. Your point about the IRS being required to send rejection notices is reassuring. I keep worrying that my form got lost or had some error I didn't catch, but you're right that they would have told me by now if there was a real problem. I'm definitely going to try the early morning calling approach this week. Getting a confirmation number sounds like exactly what I need for peace of mind. Did the agent give you any insight into how long their current processing delays are running? I'm curious if 3-4 months is still considered normal given their backlog situation.

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I'm going through this exact situation right now and the uncertainty is driving me crazy! Filed my Form 2553 back in December and it's now April with absolutely no word from the IRS. I've been operating as an S Corp this whole time - paying myself a reasonable salary, making quarterly estimated payments, the works. What's really frustrating is that I've called the IRS business line probably 8 times over the past two months. Either I can't get through at all, or I wait for hours just to get disconnected. The one time I actually reached a human, they said they couldn't find my election in their system but that it might just be a processing delay. Reading through all these responses is actually pretty reassuring though. It sounds like the IRS is just completely overwhelmed and many people are in the same boat. The early morning calling strategy someone mentioned sounds smart - I've been trying to call during lunch breaks which is probably the worst possible time. I think I'm going to try both approaches - the 7 AM calling method and maybe that written inquiry to the Ogden Service Center. At this point I just need some kind of confirmation one way or the other so I can stop second-guessing every payroll decision I make. Has anyone here successfully gotten through using the early morning approach recently?

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I completely understand your frustration! I'm actually going through something very similar - filed my 2553 in January and still haven't heard anything back. The worst part is making all these business decisions (payroll, estimated taxes, etc.) without being 100% certain of your status. I tried the early morning calling strategy that Emma mentioned last week and actually had some success! Called at 7:05 AM on a Tuesday and only waited about 35 minutes to get through. The agent confirmed that processing delays are running 4-6 months right now due to staffing issues, but she was able to look up my election and confirm it was in their system and being processed. One thing that really helped was having my EIN, filing date, and certified mail tracking number ready when I called. The agent said that having those details made it much easier for her to locate my filing in their system. If the phone route doesn't work out, the written inquiry to Ogden might be worth trying too. At least then you'd have documentation that you're actively trying to get confirmation. Hang in there - from everything I've read in this thread, it sounds like most people eventually get their status confirmed, it just takes way longer than it should!

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I went through this exact same nightmare situation about 18 months ago and wanted to share what finally worked for me. Filed my Form 2553 in February, heard absolutely nothing until October - talk about stress! What ended up saving me was a three-pronged approach. First, I kept calling the IRS business line using that early morning strategy others mentioned (7 AM sharp works best). Second, I sent a certified letter to the Ogden Service Center requesting status confirmation with copies of everything. Third, and this was key - I started filing estimated tax payments as an S Corp anyway. Here's the thing nobody tells you: if you're making good faith efforts to comply (filing timely, paying estimated taxes as S Corp, keeping records), the IRS is generally reasonable about backdating acceptance even if there are processing delays. When I finally got through to an agent, she said my election had been approved 6 months earlier but got stuck in their correspondence backlog. My advice: document everything, keep operating as S Corp if you filed timely and correctly, and don't let the anxiety paralyze you. The IRS has been dealing with massive processing delays since COVID and they know it. Most people in your situation eventually get confirmation - it just takes way longer than it should. Stay persistent but don't panic!

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This is incredibly helpful advice! I really appreciate you sharing your experience, especially the three-pronged approach. The point about making good faith efforts to comply is something I hadn't really considered - it makes sense that the IRS would be reasonable about backdating if you're clearly trying to follow the rules. I'm particularly interested in your mention of filing estimated tax payments as an S Corp anyway. Did you file Form 1120W or just make individual estimated payments based on your expected S Corp salary and distributions? I've been hesitating to commit to the S Corp estimated payment schedule without confirmation, but your experience suggests it might actually help demonstrate good faith compliance. The documentation aspect is something I definitely need to get better at. I have my certified mail receipt and copies of the original 2553, but I should probably start keeping a log of all my phone call attempts and any other correspondence efforts. Thanks for the reassurance that most people eventually get confirmation - the waiting and uncertainty really is the worst part of this whole process!

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I'm going through this exact same situation and it's reassuring to see I'm not alone! Filed my Form 2553 about 5 months ago and still no acceptance letter. My CPA keeps telling me it's fine, but the uncertainty is really stressful when you're making payroll and tax decisions based on assumed S Corp status. After reading all these responses, I'm definitely going to try the early morning calling strategy - 7 AM seems to be the magic time when wait times are shorter. I've been calling during regular business hours and either can't get through or wait forever just to get disconnected. One question for those who successfully got through to the IRS - when you called, were you able to get any kind of written confirmation or reference number? I'm worried about relying on just a verbal confirmation over the phone. Also, has anyone tried sending a written inquiry to the Ogden Service Center? I'm considering doing both approaches simultaneously. The advice about documenting everything and continuing to operate in good faith as an S Corp is really helpful. I've been second-guessing every decision, but it sounds like as long as I filed correctly and timely, I should be able to proceed with confidence while working to get that official confirmation.

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You're definitely not alone in this frustrating situation! I'm actually dealing with something very similar - filed my 2553 about 4 months ago and the silence from the IRS has been nerve-wracking. Regarding your question about written confirmation, when I finally got through to an agent a few weeks ago (using that 7 AM strategy), they were able to give me a confirmation number that I wrote down and keep with my records. The agent said I could reference that number if any issues come up when filing my 1120-S. It's not a formal letter, but it's better than just relying on my memory of the conversation. I haven't tried the written inquiry to Ogden yet, but I'm considering it as a backup plan. From what others have mentioned, it takes 4-6 weeks but gives you a paper trail of your efforts to get confirmation. The good faith compliance approach has been helpful for my peace of mind. I figure as long as I'm documenting my attempts to get confirmation and operating correctly based on the election I filed, I'm doing everything I reasonably can. The uncertainty is definitely the worst part, but it sounds like most people eventually get their status sorted out - just takes way longer than it should with their current processing delays.

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I'm dealing with this exact same situation right now and it's honestly such a relief to find this thread! Filed my Form 2553 back in November and it's now April with absolutely zero communication from the IRS. I've been operating as an S Corp this whole time - reasonable salary, quarterly payments, the works - but that nagging doubt is always there. What's been driving me crazy is that I've tried calling the business line probably a dozen times over the past few months. Half the time I can't even get into the queue, and the other half I wait 2+ hours just to get disconnected. It's incredibly frustrating when you're trying to run a business and make important tax decisions. Reading through everyone's experiences here has been really eye-opening. It sounds like the IRS processing delays are much worse than I realized, but also that most people eventually get confirmation that their election went through. The early morning calling strategy (7 AM) that several people mentioned is genius - I've been trying to call during my lunch break which is probably when everyone else is calling too. I'm definitely going to try both the early morning calls and possibly the written inquiry to Ogden. At this point I just need some kind of confirmation so I can stop second-guessing every payroll decision. Thanks to everyone who shared their experiences - it's really helpful to know this level of delay is unfortunately normal right now!

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I'm so glad you found this thread too! Your situation sounds exactly like what I went through earlier this year. The uncertainty really is the worst part - you're trying to make important business decisions while constantly wondering if you're operating under the right assumptions. I actually just got confirmation last week after following the advice from this thread. The 7 AM calling strategy really does work! I called at exactly 7:02 AM on a Wednesday and only waited about 25 minutes. The agent confirmed my S Corp election had been approved months ago but the acceptance letter got stuck in their processing backlog. One tip that helped me when I finally got through: have your EIN, exact filing date, and any certified mail tracking numbers ready before you dial. The agent said having those details made it much faster for her to locate my election in their system. Also, don't beat yourself up about the payroll decisions you've been making. If you filed your 2553 correctly and on time, you're almost certainly fine operating as an S Corp while you wait for confirmation. The IRS agent told me they're seeing this situation constantly right now due to their processing delays, and they're generally very reasonable about it as long as you're making good faith efforts to comply. Hang in there - based on everything I've seen in this thread, you're going to get your confirmation eventually. The waiting is awful but you're definitely not alone!

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I'm going through this exact same frustrating situation! Filed my Form 2553 about 3.5 months ago and haven't received any acceptance letter from the IRS. Like many of you, I've been operating as an S Corp - paying myself a reasonable salary, making quarterly estimated payments, adjusting my bookkeeping - all based on the assumption that my election went through. The uncertainty is really getting to me, especially when making payroll decisions and planning for year-end tax filing. I've tried calling the IRS business line multiple times but either can't get through or wait hours just to get disconnected. After reading all these experiences, I'm definitely going to try that early morning calling strategy at 7 AM that several people mentioned - seems like that's when wait times are actually manageable. I'm also considering the written inquiry approach to the Ogden Service Center as a backup plan. It's honestly such a relief to see that processing delays of 4-6 months are unfortunately normal right now, and that most people eventually get confirmation their election was approved. The advice about documenting everything and continuing to operate in good faith as an S Corp while pursuing confirmation really helps with the anxiety. Has anyone had success with the written inquiry method, or is calling still the most reliable way to get status confirmation? I'm thinking of trying both approaches simultaneously since I really need that peace of mind before filing my first 1120-S.

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You're definitely not alone in this! I'm actually new to this community but dealing with the exact same situation - filed my 2553 about 2 months ago and the silence from the IRS has been nerve-wracking. I'm really grateful for this thread because it's helped me understand that these massive processing delays are unfortunately the new normal. The 7 AM calling strategy that everyone keeps mentioning sounds like a game-changer - I've been trying to call during my lunch break and getting nowhere. Based on what I'm reading here, it sounds like the written inquiry to Ogden might be worth doing alongside the phone calls, especially since it gives you that paper trail of trying to get confirmation. The peace of mind aspect is huge when you're making important business decisions based on assumed S Corp status. Thanks for sharing your experience - it's really reassuring to know that operating in good faith while pursuing confirmation is the right approach. This community seems incredibly helpful for navigating these frustrating IRS processing issues!

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