A Form 2553 is really important for small businesses that want to become taxed as an S corporation under Section 1362 of the Internal Revenue Code. Below, we explain the entire process, which includes mailing addresses, fax numbers, and instructions to help ensure your application isn’t delayed at all.
Where to send Form 2553
For Corporations Located in the Eastern United States
If your principal business, office, or agency is based in one of the following states, you should send Form 2553 to the Internal Revenue Service (IRS) in Kansas City, MO:
- States Covered: Connecticut, Delaware, District of Columbia, Georgia, Illinois, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Vermont, Virginia, West Virginia, Wisconsin.
- Address:
Department of the Treasury
Internal Revenue Service
Kansas City, MO 64999 - Fax Number: 855-887-7734
For Corporations Located in the Western United States
If your corporation is located in the remaining states, use the following address and fax number:
- States Covered: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Florida, Hawaii, Idaho, Iowa, Kansas, Louisiana, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Texas, Utah, Washington, Wyoming.
- Address:
Department of the Treasury
Internal Revenue Service
Ogden, UT 84201 - Fax Number: 855-214-7520
Key requirements for filing
Eligibility Criteria
To qualify for S corporation status:
- The corporation must meet all requirements under the “Who May Elect” section in the IRS instructions.
- All shareholders must sign the consent statement.
- An officer of the corporation must sign Form 2553.
Essential Information to Include
- Corporation Name and Address: Ensure accuracy when providing the name and exact address, including any suite numbers. P.O. boxes require special handling as per the instructions.
- Employer Identification Number (EIN): Include the EIN assigned to your corporation.
- Incorporation Date and State: Specify the date and state where your corporation was formed.
- Effective Date of Election: If electing for your first tax year, enter the start date of the short tax year (if applicable).
Filing for late election
If your corporation is filing Form 2553 late, include the following statement in Part I:
“I had reasonable cause for not filing Form 2553 timely.”
Required Representations
You must demonstrate:
- Reasonable cause for the late filing.
- Diligent efforts to correct the mistake upon discovery.
Provide a detailed explanation of the delay and attach supporting documentation as necessary.
Shareholder consent statement
Each shareholder listed in Part I must consent to the S corporation election. The consent includes:
- Stock ownership percentage.
- Tax year-end details.
- Date the shares were acquired.
Shareholders must sign and date the statement, affirming their understanding of the election’s binding nature.
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Selection of fiscal tax year
Corporations not following a calendar year must complete Part II. Options include:
- Natural Business Year: Provide supporting documentation showing gross receipts for the last 47 months.
- Ownership Tax Year: Ensure that more than half of the shareholders agree to the same tax year.
If the requested fiscal year is not approved, you may need to adopt a calendar year or make a backup Section 444 election.
Qualified subchapter S trust (QSST) election
In Part III, trusts that wish to hold stock in the S corporation must file a QSST election. The election ensures the trust qualifies as a shareholder under IRS rules. Include:
- Name and address of the trust and income beneficiary.
- Signature of the income beneficiary or authorized representative.
Additional provisions for late corporate classification
If the corporation is late in making its S election because Form 8832 (Entity Classification Election) is filed late, you must certify the following items in Part IV:
- The entity is eligible under IRS rules.
- The corporation intended to be treated as an S corporation on the election’s effective date.
- All tax returns filed align with the requested S corporation classification.
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Final notes
- You can file Form 2553 via mail or fax. Always retain proof of submission for your records.
- Visit the IRS Form 2553 page for the latest updates and detailed instructions.
Filing Form 2553 correctly is essential for businesses seeking S corporation status. By following the guidelines above, you can streamline the process and avoid potential issues with the IRS.
