What Is Tax Form 2553 Used for?
A corporation or another entity eligible to be treated as a corporation is required to use the IRS 2553 Form to elect, under section 1362(a), to be an S corporation. The income of an S corporation is generally taxed to the shareholders rather than to the corporation itself. However, it is still possible that an S corporation owes tax on a certain income.
When Is Form 2553 Due?
The form may be completed and filed at any time during the tax year that precedes the tax year when the election will take effect. If the election is being made on the same tax as the election, the deadline is 2 months and 15 days after the beginning of that tax year.
IRS Form 2553 Instructions
This form consists of four (4) parts. In order to make the election, follow these instructions for filing Form 2553:
- Part I. Election Information. Enter the name and address of the corporation.
- Item A. Employer Identification Number (EIN). Enter the EIN or, if it was not yet received before the return is due, enter "Applied For" along with the date the EIN was applied.
- Items B, C, and D are self-explanatory.
- Item E. Effective Date of Election. If making the election for the corporation's first tax year in existence, enter the earliest of the following dates: when the corporation first had shareholders; when the corporation first had assets; or when the corporation began doing business. If it is not for the corporation's first tax year in existence, and the corporation wants to keep their current tax year, enter the beginning date of the tax year when the election is to be effective.
- Item F. Select Tax Year. Check the box that applies to the S corporation's selected tax year. If box (2) or (4) is checked, additional information on the tax year must be provided, and Part II must be completed. Form 2553 must be signed by the president, vice president, treasurer, chief accounting officer, assistant treasurer, or any other corporate officer authorized to sign. The form must be signed in order to be considered as timely filed.
- Items G, H, and I are self-explanatory.
- Column J. Name and Address of Shareholders. Enter the information of every shareholder required to consent to the election.
- Column K. Shareholder's Consent Statement. Each shareholder must sign and date this column.
- Column L. Stock Owned or Percentage of Ownership. Enter the shares each shareholder owns on the date this election is filed, as well as the date when they were acquired.
- Column M. Social Security Number (SSN) or EIN. Enter this information for each individual listed in column J or estate, trust, or exempt organization.
- Column N is self-explanatory.
- Part II. Selection of Fiscal Year. This part must be completed if you checked box (2) or (4) in Part I, item F.
- Part III. Qualified Subchapter S Trust (QSST) Election Under Section 1361(d)(2). This part may only be used if you make the election in Part I, because form 2553 can't be filed if only Part III is completed.
- Part IV. Late Corporate Classification Election Representations. All the representations that are listed in this part must be attached if a late corporate classification election were to be effective on the same date that an S corporation election was intended to be effective.
Where to Mail Form 2553?
If the corporation's principal office is located in: Connecticut; Delaware; District of Columbia; Florida; Indiana; Maine; Maryland; Massachusetts; New Hampshire; New Jersey; New York; North Carolina; Ohio; Pennsylvania; Rhode Island; South Carolina; Vermont; Virginia; or West Virginia, use the following address or fax number: Department of the Treasury, Internal Revenue Service Center, Cincinnati, OH 45999, Fax: (855) 270-4081
If the corporation's principal office is located in: Georgia; Illinois; Kentucky; Michigan; Tennessee; or Wisconsin, use the following address or fax number: Department of the Treasury, Internal Revenue Service Center, Kansas City, MO 64999, Fax: (855) 887-7734
If the corporation's principal office is located in: Alabama; Alaska; Arizona; Arkansas; California; Colorado; Hawaii; Idaho; Iowa; Kansas; Louisiana; Minnesota; Mississippi; Missouri; Montana; Nebraska; Nevada; New Mexico; North Dakota; Oklahoma; Oregon; South Dakota; Texas; Utah; Washington; or Wyoming, use the following address or fax number: Department of the Treasury, Internal Revenue Service Center, Ogden, UT 84201, Fax: (855) 214-7520.