Filing form 2253 for S-crop (Section E question)

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samz10461
Posts: 50
Joined: Sat Mar 14, 2020 8:14 pm

Filing form 2253 for S-crop (Section E question)

Post by samz10461 »

Need some advice when filing form 2253 - What date should I put under Part 1, Section E - Election is to be effective for tax year beginning (month, day, year.....

Background
I opened my LLC on June 14, 2021. I want to make it s-corp. I am told by one of the CPA that the date should be 6/14/2021 for Section E, other CPA is telling me 08/28/2021 (75 days from the date of formation) and I have to fax it to IRS. I want to get tax benefits for the year 2021.

I am not sure which one is the right date. I am new to this and I did hire a CPA but due to some family issues the first CPA could not complete all the paperwork and he asked to get in touch with some other CPA which lead me to this question

Any help/advice will be greatly appreciated as to what is the right date that I need to put and fax it to IRS

Thanks
Sam
Davistax
Posts: 101
Joined: Fri Aug 28, 2015 9:24 pm

Re: Filing form 2253 for S-crop (Section E question)

Post by Davistax »

I believe the form number you are referring to is 2553. You should put the first day that your LLC existed, 6/14/21.
Topic Author
samz10461
Posts: 50
Joined: Sat Mar 14, 2020 8:14 pm

Re: Filing form 2553 for S-crop (Section E question)

Post by samz10461 »

Thanks for the reply. Yes, you are right it is form 2553. Is there any official source in IRS documents? Sorry, I am new to this and I am afraid a simple date mistake might end costing me thousands of dollars.

Thanks
Sam.
Davistax
Posts: 101
Joined: Fri Aug 28, 2015 9:24 pm

Re: Filing form 2553 for S-crop (Section E question)

Post by Davistax »

samz10461 wrote: Thu Jun 24, 2021 7:19 pm Thanks for the reply. Yes, you are right it is form 2553. Is there any official source in IRS documents? Sorry, I am new to this and I am afraid a simple date mistake might end costing me thousands of dollars.

Thanks
Sam.
You want the date to coincide with the first day of existence. Otherwise, you have 2 different returns to file. One for the short period (LLC as a single member or a 1065 for a partnership) from the 1st day to the date of election. The other for the remainder of the year (form 1120S for S Corp).

If you choose the first day of existence, there is only 1 return to file for the entire year.

I've filed a couple hundred of form 2553 over the years. We always choose the first date of existence.

Best of luck.
tman389
Posts: 47
Joined: Tue Jun 25, 2019 10:46 pm

Re: Filing form 2253 for S-crop (Section E question)

Post by tman389 »

Agreeing with others that you want the date in Section E to be 6/14/2021. Note that the 75 days mentioned above refers to the time you have to file the election. The election must be filed within 75 days of the date you want it to be effective.
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