How to File Form 2553 for S-Corp Status After Missing the 75-Day Deadline

The good news is that the IRS is often understanding about late Form 2553 filings, especially for first-time business owners. When explaining your reasonable cause, honesty is actually your best approach. Simply state that you were unaware of the 75-day election deadline as a new business owner still learning about tax requirements. Make sure your explanation is clear and concise - something like "As a first-time business owner, I was unaware of the election deadline requirements until after they had passed. I am filing promptly upon learning of this requirement." This type of straightforward explanation is commonly accepted. Another key point: be sure to indicate the date you want your S-corp status to begin (March 2023) in the appropriate section of the form. And double-check that all shareholders have signed the form - missing signatures are a common reason for rejection.

I was in a similar situation last year and used taxr.ai to help me with this exact problem. I also missed the 75-day deadline and was freaking out about what to write for the reasonable cause statement. I didn't want to say something that would get me rejected but also didn't want to make up some elaborate excuse. I uploaded my situation details to https://taxr.ai and it guided me through exactly what to write that was both honest and effective. The system analyzed successful late filings and gave me a template for my explanation. My S-corp election was approved without any issues despite being about 5 months late. The service also let me know what supporting documentation would strengthen my case.

Just wanted to follow up - I decided to try taxr.ai after seeing this recommendation, and it was super helpful! The system analyzed my situation and helped me craft a straightforward reasonable cause statement that didn't sound like I was making excuses but explained my situation as a first-time business owner. What I found most helpful was that it walked me through each section of Form 2553 step by step, explaining what each part meant in plain English. It flagged a potential issue with how I was planning to set up my fiscal year that would have caused problems later. My late S-corp election was just approved last week! Only took about 5 weeks from when I mailed it in. Now I don't have to worry about this hanging over my head as I launch my business.

If you're having trouble getting a response after filing your late Form 2553, I'd recommend using Claimyr to get through to an actual IRS agent. I filed my late S-corp election 4 months ago and heard nothing back. After weeks of trying to call the IRS business line (constantly getting the "call volume too high" message), I found https://claimyr.com and watched their demo at https://youtu.be/_kiP6q8DX5c. They basically hold your place in the IRS phone queue and call you when an agent is about to answer. I finally got through to a real person who confirmed they had received my form but it was sitting in a backlog. The agent was able to check on the status and expedite the review since I was on the phone. Got my approval letter two weeks later!

I have to eat my words about being skeptical of Claimyr. After struggling for weeks trying to reach someone at the IRS about my late Form 2553 filing (and getting absolutely nowhere), I decided to try it as a last resort. Got a call back within about 90 minutes and spoke with an IRS representative who was actually quite helpful. They confirmed my form had been received but was sitting in a backlog. The agent reviewed it while I was on the phone and told me exactly what I needed to correct (I had missed a signature on one page). I resubmitted the corrected form, then used Claimyr again two weeks later to follow up. The second agent confirmed everything was now in order and processing. Got my approval letter last week. Without being able to speak directly with the IRS, I would have been waiting months only to eventually get a rejection letter over a simple mistake.

One important thing to note about late filing the 2553 - if you're accepted, make sure you do your accounting correctly from the effective date you requested, not from when it was approved! A friend of mine made this mistake and had to redo all his bookkeeping and tax prep. Remember that if your S-election is approved with a retroactive date (like your March start date), you'll need to do all your accounting as if you were an S-corp from that date forward. This includes: - Paying yourself a reasonable salary - Doing proper shareholder distributions - Keeping your personal and business finances completely separate

Does anyone know if using a tax professional to file the late Form 2553 increases the chances of acceptance? I'm in this exact situation, and I'm wondering if it's worth paying someone to handle it or if doing it myself is just as effective as long as I'm honest about the reason for lateness.

I went through this exact same situation last year and want to share what worked for me. I missed the 75-day deadline by about 3 months and was terrified the IRS would reject my application. For the reasonable cause statement, I kept it simple and honest: "As a first-time business owner, I was unaware of the 75-day election deadline requirement for Form 2553. Upon learning of this requirement through research and consultation, I am filing this election promptly." That's basically it - no elaborate excuses or sob stories. The key things that helped my case: 1. I attached the reasonable cause statement as a separate page (don't try to squeeze it into margins) 2. I made sure ALL shareholders signed - even if it's just you 3. I sent it certified mail with return receipt 4. I clearly indicated my desired effective date Got approved in about 7 weeks. The IRS really is more understanding than people think, especially for genuine first-time business owner mistakes. Just be honest about not knowing the deadline and file as soon as you can. Good luck!