Relief for Late S-Election Under Rev. Proc. 2013-30

Published on 5/02/2014
Categories: Business, Corporate, IRS Regulations, S Corporation

IMG_0912In August 2013, the IRS issued Rev. Proc. 2013-30 that consolidates and simplifies rules provided previously. Taxpayers now have 3 years and 75 days from the date the S-election was originally intended to be effective to file a late S-election. No use user fee will apply. The election will be effective as of that intended date. To qualify for relief, the corporation must meet the following:

  • The S-election would have been effective had the Form 2553 been submitted timely.
  • The failure to qualify as an S-corporation was solely because the election was not submitted timely.
  • The corporation has reasonable cause for its failure to file timely and acted diligently to correct the error.

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