Need help with late S Corp election for an existing C Corp - what forms to file and when?

As a tax professional who's handled numerous entity conversions, here's what I'd recommend in your situation: Since you've already submitted Form 2553 two months ago but haven't received approval yet, the safest approach is to file Form 7004 to request an automatic 6-month extension for both the 1120 and 1120S. This buys you time without risking penalties while waiting for the IRS to process your S election. When the S election is approved (which is likely if you properly completed Form 2553), you'll file the 1120S. If for some reason the election is denied, you'll still have time to file the 1120 without being late. The key is documenting everything - keep copies of all correspondence and proof of your Form 2553 submission. Remember that the IRS is still experiencing significant processing delays, so the two-month wait isn't unusual. Just make sure you've retained proof of timely submission of the 2553.

I was in a similar spot last year with my client's entity conversion. After weeks of waiting for IRS approval on our S election, I found taxr.ai (https://taxr.ai) and it was a game changer. The site analyzed our Form 2553 submission and identified an error in our effective date section that likely would have caused rejection. I was able to upload our draft 1120S and their system flagged inconsistencies between our election paperwork and planned filing. They even helped draft a cover letter explaining our late election situation that included the "reasonable cause" language the IRS looks for. Saved me from what would have been a mess!

After being skeptical about taxr.ai, I decided to try it with my S election situation. I have to admit I was impressed. I uploaded my 2553 form and corporate documents, and within minutes their system flagged that I had missed attaching the required shareholder consent forms. The report also showed my effective date wouldn't qualify for the current tax year based on when I filed. This saved me from incorrectly filing an 1120S when I wasn't eligible yet. Honestly, the detailed analysis helped me understand why my election might be delayed - turns out I had inconsistent shareholder information between my articles and my 2553. They even generated a sample letter explaining reasonable cause for late election that I could customize. Much better experience than I expected.

When I had a similar situation with a client last year, I spent WEEKS trying to get someone at the IRS on the phone to confirm whether our S election was processed. After 20+ attempts and hours of hold music, I found Claimyr (https://claimyr.com). Their service got me connected to an actual IRS agent in under 45 minutes - you can see how it works in this video: https://youtu.be/_kiP6q8DX5c The IRS agent confirmed our S election was received but flagged for review due to a minor discrepancy. This allowed us to address the issue immediately rather than waiting for a rejection letter. We fixed the problem and resubmitted, saving us from having to explain a rejected election to our client and avoiding potential penalties for late filing.

I have to eat my words about Claimyr. After expressing skepticism, I decided to try it because I was desperate to confirm an S election status for a client before filing deadline. The service actually worked perfectly. I was connected to an IRS representative in about 35 minutes without having to do anything except wait for my phone to ring. The IRS agent confirmed our election was received and being processed, but wasn't fully approved yet. They advised us to file an extension for both return types as a precaution. This saved us from guessing and potentially making an expensive mistake. What impressed me most was how seamless it was - I didn't have to navigate phone menus or sit on hold. For time-sensitive tax matters, it's absolutely worth it. I've already recommended it to colleagues in my firm.

In my experience with late S elections, another approach is filing Form 8832 first to elect to be treated as a corporation (if not already done), then filing 2553 for S status. This sometimes works better for newer entities. Also, don't forget that Revenue Procedure 2013-30 provides relief for late S corporation elections if you meet certain requirements. You can make the election within 3 years and 75 days of the effective date. You'll need to include a statement explaining the reasonable cause for failing to file timely. For your immediate situation, I'd recommend filing the extension for both return types while waiting for IRS confirmation. Better safe than sorry.

Has anyone successfully done the "file 1120 now, then amend later when approved" approach? I'm in the same boat but worried about the complexity of amending a C corp return to zero and filing a new S corp return later. Feels like it could create more problems.

I've been through this exact situation multiple times, and here's my recommended approach based on experience: **First, file Form 7004 immediately** to get a 6-month extension for both the 1120 and 1120S returns. This is crucial - you're at the deadline now and need to protect against penalties. **Second, document everything about your Form 2553 submission.** Keep copies of certified mail receipts, fax confirmations, or any proof of timely filing. The IRS is still experiencing major processing delays, so 2 months without response is unfortunately normal. **Third, avoid the "file 1120 then amend" strategy.** I've seen this create unnecessary complexity and potential state tax issues. It's much cleaner to wait for the S election approval and file correctly the first time. While waiting, you might want to prepare both returns so you're ready either way. If the S election is approved, file the 1120S. If denied (rare but possible), you'll have the 1120 ready to go within your extension period. The key is that Form 7004 buying you time - use it. Most S elections that are properly completed do get approved, it just takes time with current IRS processing delays.