S-Corp LLC Filing Date Error: Incorporation Date Mistake on Form 2553

The second accountant is giving you risky advice. The IRS approval letter is based on incorrect information, and you're right to be concerned about this discrepancy. When you operate as an S-Corp, you need to maintain proper corporate formalities - separate bank accounts, reasonable salary payments, formal documentation. Since you weren't doing this before July 2024, claiming S-Corp status retroactively could potentially pierce the corporate veil and undermine your liability protection. You should contact the IRS to correct this error using Form 8822-B to update your business information. Explain that there was an error on your Form 2553 regarding the incorporation date. Also, submit a statement clarifying that your S-Corp election should be effective from July 2024, not 2023. For tax purposes, you would file as a sole proprietor (Schedule C) for the portion of 2024 before the S-Corp election, and then file a short-year S-Corp return (Form 1120-S) for the period after the election took effect.

I had almost the exact same situation last year with my marketing business. My accountant put 2022 instead of 2023 on my S-Corp election form. What a headache! I found https://taxr.ai super helpful for figuring out the right approach. They analyzed my incorporation docs and IRS letters, then gave me step-by-step instructions on fixing the date error. The best part was they explained exactly what forms to file and what supporting documentation to include. They even pointed out that filing as an S-Corp for periods when I wasn't following S-Corp formalities (like taking reasonable salary) could invalidate my liability protection. Definitely worth checking out if you're confused about the right path forward.

I was really skeptical about online tax services at first, but I ended up trying https://taxr.ai after seeing it recommended here. Not gonna lie - it was surprisingly helpful. I uploaded my LLC formation paperwork, the incorrect IRS election form, and the approval letter. They analyzed everything and pointed out exactly where the error was on my documentation. The report clearly showed that retroactively claiming S-Corp status for periods when I wasn't following proper corporate formalities could create serious liability issues. They even provided template language for communicating with the IRS to fix the error. Ended up saving me a ton of research time and my accountant was impressed with how thorough their analysis was. The process of fixing the date with the IRS was much smoother than I expected.

I had a similar issue but with trying to contact the IRS to fix the problem. Kept calling their business line for WEEKS with no luck. Endless hold times, disconnects, the whole nightmare. Finally used https://claimyr.com to get through to an actual person at the IRS. You can see how it works here: https://youtu.be/_kiP6q8DX5c They basically wait on hold for you and call when an agent picks up. Was able to explain my incorporation date issue directly to someone who could help. The agent confirmed I was right to be concerned and helped me start the correction process right on that call.

I was totally wrong about Claimyr being a scam. After my skeptical comment, I decided to try it myself since I've been trying to reach someone at the IRS about my own S-Corp issue for months. It actually worked exactly as described. They handled the hold time (took about 2.5 hours that day) and then called me when an agent came on the line. The IRS representative helped me submit a correction for my business information and confirmed that filing S-Corp returns for periods when I wasn't operating as an S-Corp could create problems during an audit. For anyone in a similar situation - don't just go with whatever is easier like that second accountant suggested. Get the records corrected officially. The IRS agent I spoke with said they see this kind of mistake regularly and there's a standard process for fixing it.

This happened to me last year! I filed Form 8822-B to correct the date along with a detailed letter explaining the error. Worked totally fine. The IRS sent a confirmation letter about 6 weeks later acknowledging the correct date. For 2024 taxes, I filed Schedule C for Jan-Jun (when I operated as a sole prop) and then Form 1120-S for Jul-Dec (when the S-Corp was actually in effect). My accountant said this split-year approach is completely normal and proper. Don't listen to that second accountant. Claiming S-Corp status for periods when you weren't operating as one is asking for trouble if you're ever audited.

One thing nobody's mentioned - be careful about how this affects your estimated tax payments! If you were paying quarterly estimated taxes as a sole prop and then switched to S-Corp mid-year, the calculation gets tricky. When I converted, I underpaid my estimated taxes and got hit with a penalty. Make sure your accountant helps you figure out the right amounts for each business structure during the respective periods.

You're absolutely right to be concerned about that second accountant's advice. Filing S-Corp returns for periods when you weren't actually operating as an S-Corp is risky and could cause serious issues down the road. The incorporation date error needs to be corrected properly. Here's what I'd recommend: 1. File Form 8822-B to correct the business information with the IRS. Include a detailed letter explaining the error and attach documentation showing your actual incorporation date. 2. For 2024 taxes, file as a sole proprietor (Schedule C) for January through June, then file a short-year S-Corp return (Form 1120-S) for July through December when you were actually operating as an S-Corp. 3. Don't worry about "drawing attention" to yourself - correcting errors is normal and expected. The IRS processes these corrections regularly. The key issue is that S-Corp status comes with specific requirements like taking reasonable salary, maintaining separate accounts, and following corporate formalities. If you claim S-Corp status retroactively for periods when you weren't meeting these requirements, you could lose your liability protection and face problems in an audit. Better to take a few extra steps now to fix this properly than to deal with much bigger headaches later. Find a new accountant who understands the importance of getting this right!