Want your calendar-year firm taxed as an S corporation for all of 2020?
Then you need to file to elect S status by filing Form 2553 with IRS by March 16.
The IRS has a simplified method for businesses to handle late S elections. Generally, firms have three years and 75 days to seek relief.
They may also have to show that they are otherwise eligible to be treated as an S corporation and that the firm and its shareholders reported income consistent with S corporation status.
Firms must also demonstrate that there was reasonable cause for the late election. To request relief, file Form 2553, write “Filed Pursuant to Rev. Proc. 2013-30”at the top of the form and submit proof that the firm qualifies for the extra time.