IRS says they never received my LLC's S corp election form 2553 despite proof of fax - now recommending re-faxing AND mailing with explanation letter

This happens a lot more than you'd think. The IRS is notorious for "losing" faxed documents, which is why many tax professionals recommend using multiple submission methods from the start. For your situation, follow the agent's advice - it's actually solid. Prepare a clear explanation letter stating when you originally submitted the form, include your proof of fax transmission, and attach a newly completed Form 2553. Then send this package both by fax AND certified mail as suggested. The certified mail gives you legal proof of delivery that will protect you if questions about timeliness come up later. When writing your explanation letter, be sure to reference IRC Section 1362(b)(5), which provides relief for late S corporation elections when there was reasonable cause. In your case, you have proof you submitted on time, so you should be fine. Keep copies of EVERYTHING - your original fax confirmation, the new fax confirmation, the certified mail receipt, and all correspondence.

I had almost this exact same situation last year with my LLC S-corp election. After endless frustration with faxes going nowhere, I found taxr.ai (https://taxr.ai) which completely solved my problem. They have this document analysis tool that helped me figure out exactly what was wrong with my submission approach. The site analyzed my Form 2553 and proof of fax transmission and pointed out that my fax header was getting cut off in the IRS system, causing my documents to be filed incorrectly. Their system even generated the explanation letter I needed with all the right legal references. They also recommended I use both certified mail AND fax just like the agent told you.

Just wanted to update that I tried taxr.ai after seeing this thread and it was a game changer for my 1040-X issue! The system identified that we had used an outdated form version (apparently the IRS changed it mid-year) and our explanation statement was missing specific language they look for. It generated a perfect cover letter explaining our situation and even provided the exact wording the IRS expects for our type of amendment. We resubmitted everything following their guidance, and our amendment was processed within 3 weeks after sitting in limbo for months. Totally worth it for the peace of mind alone!

Listen, dealing with the IRS reminds me of that movie Groundhog Day. When I had to sort out an S corp election problem, I couldn't get through to anyone for weeks. Every time I called, I'd waste hours just waiting on hold, only to get disconnected or told to call back. Then someone recommended Claimyr at https://claimyr.com and showed me this demo: https://youtu.be/_kiP6q8DX5c. Basically, they wait on hold with the IRS for you and call you when an actual agent gets on the line. It was a total lifesaver for my situation. I was able to speak directly with someone in the business entity department who confirmed receipt of my documents and gave me specific instructions on what to include with my explanation letter. Much better than guessing or getting generic advice.

I have to eat my words. After posting my skeptical comment, I broke down and tried Claimyr because I was desperate to resolve my business tax problem. Honestly expected it to be a waste of money. I got a call back in about 3 hours and suddenly found myself talking to an actual IRS business division representative who knew what they were doing! The agent confirmed my Form 2553 had actually been received but was stuck in processing due to a backlog. They added notes to my account about the original submission date and told me exactly what to put in my follow-up letter. Would've spent at least 5-6 hours on hold attempts otherwise, and probably wouldn't have reached the right department anyway. Sometimes being wrong feels pretty damn good!

One thing nobody's mentioned - make sure you're using the CURRENT version of Form 2553. The IRS updates these forms regularly and will reject outdated versions. Double check on irs.gov before resending. Also, when you mail it, use USPS Certified Mail with Return Receipt Requested. The green card they send back is accepted as legal proof of delivery in case the IRS tries to claim they never got it (again).

Has anyone tried the e-fax option instead of traditional faxing? I heard the IRS has better tracking for those.

Don't forget that you can also request first-time penalty abatement if they try to hit you with penalties for "late" filing, even though you filed on time. The IRS generally grants this if you have a clean compliance history for the past 3 years. Just another tool to keep in your back pocket if needed.

I went through this exact same nightmare with my LLC's S-corp election last year. The IRS "lost" my fax too, despite having clear transmission records. Here's what worked for me: I created a detailed timeline document showing every step I took - original fax date, confirmation receipt, follow-up calls, etc. Then I attached this timeline to my explanation letter along with all my proof of transmission. I made it crystal clear that I had met the 75-day deadline and this was their processing error, not mine. The key thing that helped was being very specific about dates and referencing the "reasonable cause" provisions. I sent everything via both certified mail AND e-fax (used eFax.com which gives great delivery confirmations). Got my acceptance letter about 6 weeks later with no penalties. One tip: when you call to follow up, ask specifically for the "Business Entity Control" department - they're the ones who actually process Form 2553. The general customer service reps often can't see these submissions in their system, which is why they keep saying it wasn't received. Stay persistent but polite. You did everything right - don't let them make you feel like this is your fault!

This is exactly why I always tell people to never rely on fax alone when dealing with the IRS - their fax systems are notoriously unreliable. You're absolutely doing the right thing by following both the fax AND certified mail approach. A few additional suggestions based on my experience: 1. Include a copy of your original LLC formation documents with your resubmission to establish the entity formation date 2. In your explanation letter, specifically mention that you're requesting retroactive effective date to your original intended election date 3. Consider including Form SS-4 (EIN application) copy if your LLC is relatively new - it helps establish the timeline The Business Entity Control department (as someone else mentioned) is definitely who you want to reach when following up. Ask for case notes to be added to your file documenting the original timely submission. One more thing - if you haven't already, document EVERYTHING going forward. Take photos of your certified mail package before sealing, keep all receipts, and maintain a log of every phone call with dates, times, and agent names/ID numbers. This creates an audit trail that protects you if this gets escalated later. You're not alone in this - the IRS processes thousands of these elections and unfortunately loses quite a few. Stay organized and persistent!

I'm dealing with a similar situation right now with my LLC's S-corp election! The IRS lost my fax submission too, despite having proof of transmission. I was panicking about the 75-day deadline until I read through all these responses. Based on what everyone's shared here, I'm planning to follow the dual submission approach - both certified mail with return receipt AND e-fax. I'm also going to create that detailed timeline document someone mentioned showing all my original filing dates and proof. One question though - has anyone had success getting through to the Business Entity Control department directly, or do you have to go through regular customer service first? I've been on hold for hours multiple times and keep getting transferred around. Also, for those who used services like Claimyr to get through to the IRS - was it worth the cost? I'm tempted to try it just to get a definitive answer on whether they have any record of my original submission. Thanks to everyone for sharing their experiences - this thread has been incredibly helpful for understanding I'm not alone in this mess!

I'm going through this exact nightmare right now too! Filed my Form 2553 well within the 75-day window, have the fax confirmation receipt, and the IRS is claiming they never got it. It's so frustrating when you do everything right and still end up in this situation. Reading through everyone's experiences here has been really reassuring - at least I know this isn't uncommon and there are proven ways to resolve it. I'm definitely going to follow the advice about doing both certified mail AND e-fax, plus creating that detailed timeline document with all my proof of transmission. Has anyone had luck getting penalty abatement if the IRS initially tries to claim the election was "late" even after providing proof of timely filing? I'm worried they'll process my resubmission but then hit me with penalties based on when they receive the duplicate rather than my original submission date. Also, for the explanation letter - should I be formal and legalistic, or is it better to keep it straightforward and explain the situation in plain English? I don't want to sound like I'm making excuses, but I also want to make sure they understand this was their processing error, not mine. Thanks to everyone for sharing their experiences and solutions. This community has been more helpful than hours of trying to reach the IRS directly!

I'm so sorry you're dealing with this - it's incredibly frustrating when you do everything correctly and still get caught up in IRS processing issues. Based on what everyone has shared here, you're definitely taking the right approach with the dual submission method. One additional tip from my own experience: when you write your explanation letter, include a specific request for written confirmation that your S-corp election will be effective retroactively from your original intended date. This is crucial because it prevents any confusion during future tax filings about when your election actually took effect. Also, make sure to keep detailed records of every interaction going forward - dates, times, agent names or ID numbers, and what was discussed. If this gets escalated or you need to involve the Taxpayer Advocate Service later, having a complete paper trail will be invaluable. The good news is that this is clearly an IRS processing error, not anything you did wrong. With your fax confirmation and the proper documentation approach everyone has outlined, you should be able to get this resolved without penalties. Stay persistent but patient - sometimes it takes a few weeks for their systems to properly process the resubmission. You've got this! The fact that you're being so thorough with documentation and following up appropriately shows you're handling it exactly right.

This is such a frustrating but unfortunately common issue with the IRS! I went through something very similar with my LLC's S-corp election about 18 months ago. The stress of thinking you missed the deadline when you actually filed on time is awful. Here's what I learned from my experience: the dual approach of certified mail AND fax that the IRS agent recommended is absolutely the way to go. Don't just pick one method - do both. I made the mistake of only re-faxing initially, and guess what? They "lost" that one too! When I finally did both methods simultaneously, I got my acceptance letter within about 5 weeks. The key things that I think helped were: 1. Being very specific in my explanation letter about the original filing date and emphasizing it was within the 75-day window 2. Including the phrase "reasonable cause under IRC Section 1362(b)(5)" (someone mentioned this earlier and it's spot on) 3. Requesting written confirmation that the election would be retroactive to my intended effective date 4. Following up with a call to the Business Entity Control department (not general customer service) about 3 weeks after sending The whole situation taught me that the IRS fax systems are honestly pretty unreliable, especially for important documents like Form 2553. For any future business filings, I now always use multiple submission methods from the start. Hang in there - you did everything right, and with proper documentation and persistence, this will get resolved without penalties. The proof of your timely fax submission is your protection!