Printable IRS 2553 Template

The IRS 2553 form is a document used by small business owners to elect S Corporation status for federal tax purposes. This election allows corporations to pass income, losses, and deductions directly to shareholders, avoiding double taxation. Understanding how to properly fill out this form is crucial for maximizing tax benefits; start your journey by clicking the button below.

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The IRS Form 2553 is a crucial document for small business owners who wish to elect S corporation status for their entities. By filing this form, a corporation or a limited liability company (LLC) can choose to be taxed as an S corporation, which can provide significant tax benefits. This election allows profits and losses to pass through directly to the shareholders’ personal tax returns, thereby avoiding the double taxation typically associated with traditional corporations. To successfully complete Form 2553, businesses must meet specific eligibility requirements, including having a limited number of shareholders and only one class of stock. Timing is also essential; the form must be submitted within a certain period following the formation of the business or at the beginning of the tax year. Additionally, the form requires detailed information about the corporation, including its name, address, and the consent of all shareholders. Understanding the intricacies of Form 2553 is vital for entrepreneurs looking to optimize their tax situation while ensuring compliance with IRS regulations.

Common mistakes

Incorrect Eligibility Check: Many individuals fail to confirm that their business meets the eligibility requirements for S corporation status. This includes ensuring that the business has no more than 100 shareholders and that all shareholders are eligible entities.
Missing Signatures: It's common for filers to overlook the necessity of obtaining signatures from all shareholders. Each shareholder must sign the form to validate the election.
Improper Timing: Filing the IRS 2553 form too late can result in the loss of S corporation status for the tax year. The form must be submitted within a specific timeframe, typically 75 days after the start of the tax year.
Incorrect Tax Year Selection: Some people mistakenly choose a tax year that does not align with the requirements for S corporations. It's essential to select a tax year that is consistent with the business's accounting method.
Failure to Provide Complete Information: Incomplete forms can lead to delays or rejections. All required fields must be filled out accurately, including the name, address, and Employer Identification Number (EIN) of the corporation.
Not Keeping Copies: Many forget to keep copies of the submitted form for their records. Retaining a copy is crucial for future reference and any potential inquiries from the IRS.
Ignoring State Requirements: While the IRS 2553 form pertains to federal tax status, some states have additional requirements. Failing to check state regulations can lead to complications.
Assuming Automatic Approval: Some individuals mistakenly believe that submitting the form guarantees S corporation status. The IRS reviews each application, and approval is not automatic.

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Key takeaways

The IRS 2553 form is an important document for small businesses looking to elect S Corporation status. Here are some key takeaways to consider when filling out and using this form:

Eligibility Requirements: To qualify for S Corporation status, your business must meet specific criteria, including having no more than 100 shareholders and only one class of stock.
Filing Deadline: The form must be filed within 75 days of the beginning of the tax year for which the election is to take effect. Late submissions may result in the loss of S Corporation status for that year.
Shareholder Consent: All shareholders must consent to the S Corporation election. This is typically documented on the form itself.
Completing the Form: Accurate information is crucial. Ensure that all names, addresses, and identification numbers are correct to avoid processing delays.
State Requirements: Some states have their own requirements for S Corporation elections. It’s important to check local laws to ensure compliance.
Tax Implications: Electing S Corporation status can have tax benefits, such as avoiding double taxation on corporate income. However, it may also lead to additional tax responsibilities.
Record Keeping: After filing, maintain copies of the form and any related documentation. This is important for future reference and compliance with IRS regulations.

IRS 2553 Example

Note: Form 2553 begins on the next page.

Where To File Form 2553 after 6/17/19

If the corporation’s principal business, office,	Use the following address
or agency is located in	or fax number

Connecticut, Delaware, District of Columbia,	Department of the Treasury
Georgia, Illinois, Indiana, Kentucky, Maine,	Internal Revenue Service
Maryland, Massachusetts, Michigan, New	Kansas City, MO 64999
Hampshire, New Jersey, New York, North Carolina,
Ohio, Pennsylvania, Rhode Island, South Carolina,
Tennessee, Vermont, Virginia, West Virginia,	Fax # 855-887-7734
Wisconsin

Alabama, Alaska, Arizona, Arkansas, California,	Department of the Treasury
Colorado, Florida, Hawaii, Idaho, Iowa, Kansas,	Internal Revenue Service
Louisiana, Minnesota, Mississippi, Missouri,	Ogden, UT 84201
Montana, Nebraska, Nevada, New Mexico, North
Dakota, Oklahoma, Oregon, South Dakota, Texas,
Utah, Washington, Wyoming	Fax # 855-214-7520

Form 2553

(Rev. December 2017)

Department of the Treasury Internal Revenue Service

Election by a Small Business Corporation

(Under section 1362 of the Internal Revenue Code)

(Including a late election filed pursuant to Rev. Proc. 2013-30)

▶You can fax this form to the IRS. See separate instructions.

▶Go to www.irs.gov/Form2553 for instructions and the latest information.

OMB No. 1545-0123

Note: This election to be an S corporation can be accepted only if all the tests are met under Who May Elect in the instructions, all shareholders have signed the consent statement, an officer has signed below, and the exact name and address of the corporation (entity) and other required form information have been provided.

Part I		Election Information
		Name (see instructions)	A Employer identification number
Type
Type		Number, street, and room or suite no. If a P.O. box, see instructions.	B Date incorporated
or			B Date incorporated
or
Print
Print		City or town, state or province, country, and ZIP or foreign postal code	C State of incorporation
			C State of incorporation

D	Check	the applicable box(es) if the corporation (entity), after applying for the EIN shown in A above, changed its		name or	address

EElection is to be effective for tax year beginning (month, day, year) (see instructions) . . . . . . ▶

Caution: A corporation (entity) making the election for its first tax year in existence will usually enter the beginning date of a short tax year that begins on a date other than January 1.

FSelected tax year:

(1) Calendar year

(2) Fiscal year ending (month and day) ▶

(3) 52-53-week year ending with reference to the month of December

(4) 52-53-week year ending with reference to the month of ▶

If box (2) or (4) is checked, complete Part II.

GIf more than 100 shareholders are listed for item J (see page 2), check this box if treating members of a family as one shareholder results in no more than 100 shareholders (see test 2 under Who May Elect in the instructions) ▶

HName and title of officer or legal representative whom the IRS may call for more information

Telephone number of officer or legal representative

IIf this S corporation election is being filed late, I declare I had reasonable cause for not filing Form 2553 timely. If this late election is being made by an entity eligible to elect to be treated as a corporation, I declare I also had reasonable cause for not filing an entity classification election timely and the representations listed in Part IV are true. See below for my explanation of the reasons the election or elections were not made on time and a description of my diligent actions to correct the mistake upon its discovery. See instructions.

	Under penalties of perjury, I declare that I have examined this election, including accompanying documents, and, to the best of my
Sign knowledge and belief, the election contains all the relevant facts relating to the election, and such facts are true, correct, and complete.
Here	▲Signature of officer
		Title	Date
For Paperwork Reduction Act Notice, see separate instructions.		Cat. No. 18629R	Form 2553 (Rev. 12-2017)

Form 2553 (Rev. 12-2017)	Page 2
Name	Employer identification number

Part I Election Information (continued) Note: If you need more rows, use additional copies of page 2.

Name and address of each

shareholder or former shareholder required to consent to the election.

(see instructions)

Shareholder’s Consent Statement

Under penalties of perjury, I declare that I consent to the election of the above-named corporation (entity) to be an S corporation under section 1362(a) and that I have examined this consent statement, including accompanying documents, and, to the best of my knowledge and belief, the election contains all the relevant facts relating to the election, and such facts are true, correct, and complete. I understand my consent is binding and may not be withdrawn after the corporation (entity) has made a valid election. If seeking relief for a late filed election, I also declare under penalties of perjury that I have reported my income on all affected returns consistent with the S corporation election for the year for which the election should have been filed (see beginning date entered on line E) and for all subsequent years.

Signature

Date

Stock owned or

percentage of ownership

(see instructions)

Number of
shares or
percentage	Date(s)
of ownership	acquired

M
Social security
number or	N
employer	Shareholder’s
identification	tax year ends
number (see	(month and
instructions)	day)

Form 2553 (Rev. 12-2017)

Form 2553 (Rev. 12-2017)		Page 3
Name		Employer identification number

Part II	Selection of Fiscal Tax Year (see instructions)
Note: All corporations using this part must complete item O and item P, Q, or R.
O Check the applicable box to indicate whether the corporation is:
1.	A new corporation adopting the tax year entered in item F, Part I.
2.	An existing corporation retaining the tax year entered in item F, Part I.
3.	An existing corporation changing to the tax year entered in item F, Part I.

PComplete item P if the corporation is using the automatic approval provisions of Rev. Proc. 2006-46, 2006-45 I.R.B. 859, to request (1) a natural business year (as defined in section 5.07 of Rev. Proc. 2006-46) or (2) a year that satisfies the ownership tax year test (as defined in section 5.08 of Rev. Proc. 2006-46). Check the applicable box below to indicate the representation statement the corporation is making.

1. Natural Business Year ▶

I represent that the corporation is adopting, retaining, or changing to a tax year that qualifies

as its natural business year (as defined in section 5.07 of Rev. Proc. 2006-46) and has attached a statement showing separately for each month the gross receipts for the most recent 47 months. See instructions. I also represent that the corporation is not precluded by section 4.02 of Rev. Proc. 2006-46 from obtaining automatic approval of such adoption, retention, or change in tax year.

2. Ownership Tax Year ▶

I represent that shareholders (as described in section 5.08 of Rev. Proc. 2006-46) holding more

than half of the shares of the stock (as of the first day of the tax year to which the request relates) of the corporation have the same tax year or are concurrently changing to the tax year that the corporation adopts, retains, or changes to per item F, Part I, and that such tax year satisfies the requirement of section 4.01(3) of Rev. Proc. 2006-46. I also represent that the corporation is not precluded by section 4.02 of Rev. Proc. 2006-46 from obtaining automatic approval of such adoption, retention, or change in tax year.

Note: If you do not use item P and the corporation wants a fiscal tax year, complete either item Q or R below. Item Q is used to request a fiscal tax year based on a business purpose and to make a back-up section 444 election. Item R is used to make a regular section 444 election.

QBusiness Purpose—To request a fiscal tax year based on a business purpose, check box Q1. See instructions for details including payment of a user fee. You may also check box Q2 and/or box Q3.

1. Check here ▶ if the fiscal year entered in item F, Part I, is requested under the prior approval provisions of Rev. Proc. 2002-39, 2002-22 I.R.B. 1046. Attach to Form 2553 a statement describing the relevant facts and circumstances and, if applicable, the gross receipts from sales and services necessary to establish a business purpose. See the instructions for details regarding the gross receipts from sales and services. If the IRS proposes to disapprove the requested fiscal year, do you want a conference with the IRS National Office?

Yes

2.Check here ▶ to show that the corporation intends to make a back-up section 444 election in the event the corporation’s business purpose request is not approved by the IRS. See instructions for more information.

3.Check here ▶ to show that the corporation agrees to adopt or change to a tax year ending December 31 if necessary for the IRS to accept this election for S corporation status in the event (1) the corporation’s business purpose request is not approved and the corporation makes a back-up section 444 election, but is ultimately not qualified to make a section 444 election, or (2) the corporation’s business purpose request is not approved and the corporation did not make a back-up section 444 election.

RSection 444 Election—To make a section 444 election, check box R1. You may also check box R2.

1.Check here ▶ to show that the corporation will make, if qualified, a section 444 election to have the fiscal tax year shown in item F, Part I. To make the election, you must complete Form 8716, Election To Have a Tax Year Other Than a Required Tax Year, and either attach it to Form 2553 or file it separately.

2.Check here ▶ to show that the corporation agrees to adopt or change to a tax year ending December 31 if necessary for the IRS to accept this election for S corporation status in the event the corporation is ultimately not qualified to make a section 444 election.

Form 2553 (Rev. 12-2017)

Form 2553 (Rev. 12-2017)	Page 4
Name	Employer identification number

Part III Qualified Subchapter S Trust (QSST) Election Under Section 1361(d)(2)* Note: If you are making more than

one QSST election, use additional copies of page 4.

Income beneficiary’s name and address

Social security number

Trust’s name and address

Employer identification number

Date on which stock of the corporation was transferred to the trust (month, day, year) . . . . . . . . ▶

In order for the trust named above to be a QSST and thus a qualifying shareholder of the S corporation for which this Form 2553 is filed, I hereby make the election under section 1361(d)(2). Under penalties of perjury, I certify that the trust meets the definitional requirements of section 1361(d)(3) and that all other information provided in Part III is true, correct, and complete.

Signature of income beneficiary or signature and title of legal representative or other qualified person making the election

Date

*Use Part III to make the QSST election only if stock of the corporation has been transferred to the trust on or before the date on which the corporation makes its election to be an S corporation. The QSST election must be made and filed separately if stock of the corporation is transferred to the trust after the date on which the corporation makes the S election.

Part IV Late Corporate Classification Election Representations (see instructions)

If a late entity classification election was intended to be effective on the same date that the S corporation election was intended to be effective, relief for a late S corporation election must also include the following representations.

1The requesting entity is an eligible entity as defined in Regulations section 301.7701-3(a);

2The requesting entity intended to be classified as a corporation as of the effective date of the S corporation status;

3The requesting entity fails to qualify as a corporation solely because Form 8832, Entity Classification Election, was not timely filed under Regulations section 301.7701-3(c)(1)(i), or Form 8832 was not deemed to have been filed under Regulations section 301.7701-3(c)(1)(v)(C);

4The requesting entity fails to qualify as an S corporation on the effective date of the S corporation status solely because the S corporation election was not timely filed pursuant to section 1362(b); and

5a The requesting entity timely filed all required federal tax returns and information returns consistent with its requested classification as an S corporation for all of the years the entity intended to be an S corporation and no inconsistent tax or information returns have been filed by or with respect to the entity during any of the tax years, or

bThe requesting entity has not filed a federal tax or information return for the first year in which the election was intended to be effective because the due date has not passed for that year’s federal tax or information return.

Form 2553 (Rev. 12-2017)

Understanding IRS 2553

What is the IRS Form 2553?

The IRS Form 2553 is a document that allows a corporation to elect to be taxed as an S corporation. This election can provide significant tax benefits, such as avoiding double taxation on corporate income. By filing this form, a corporation can pass its income, losses, deductions, and credits directly to shareholders, who then report these items on their personal tax returns.

Who is eligible to file Form 2553?

To be eligible to file Form 2553, a corporation must meet several criteria:

The corporation must be a domestic entity.
It must have only allowable shareholders, which include individuals, certain trusts, and estates.
The corporation can have no more than 100 shareholders.
It can issue only one class of stock.
All shareholders must consent to the S corporation election.

When should Form 2553 be filed?

Form 2553 should be filed within 75 days of the beginning of the tax year in which the S corporation election is to take effect. For newly formed corporations, this means filing within 75 days of the date of incorporation. If the form is filed late, the election may not be effective until the following tax year, unless the corporation can demonstrate reasonable cause for the delay.

What happens after filing Form 2553?

Once Form 2553 is filed and accepted by the IRS, the corporation will be taxed as an S corporation for federal tax purposes. The IRS will send a confirmation of the election. It is important for the corporation to maintain compliance with S corporation requirements to retain this status. This includes adhering to the limits on shareholders and ensuring that only one class of stock is issued.

Can Form 2553 be revoked?

Yes, a corporation can revoke its S corporation election by filing a statement with the IRS. This revocation can be made voluntarily by the shareholders or may occur if the corporation fails to meet the eligibility requirements. The revocation is effective on the date specified in the statement or, if no date is specified, at the beginning of the tax year following the year in which the revocation is filed.

How to Use IRS 2553

Completing the IRS Form 2553 is an important step for businesses looking to elect S corporation status. This process involves providing specific information about your business and its owners. After submitting the form, the IRS will review it to determine if your election is valid. Below are the steps to fill out the form accurately.

Begin by downloading the IRS Form 2553 from the official IRS website.
At the top of the form, enter the name of your corporation as it appears on your articles of incorporation.
Provide the corporation's address, including the city, state, and ZIP code.
In the next section, enter the date of incorporation and the state where the corporation was formed.
Indicate the tax year your corporation will follow. Most businesses choose a calendar year.
List the names, addresses, and Social Security numbers of all shareholders. Ensure that all shareholders consent to the S corporation election.
In the section regarding the number of shares issued and outstanding, provide the total number of shares each shareholder owns.
Sign and date the form at the bottom. An authorized officer of the corporation must sign.
Submit the completed form to the appropriate IRS office. Be mindful of deadlines to ensure timely processing.