S-Corp retro election

[ILLMAS]

Has anyone been successful in making a late election to become a S-Corp?  I have partnership client that would like to do a retro election to January 1, 2022.  
 

I am aware this goes against a timely filed form 2553 and this a last minute decision by the client.

Thanks 

 

[Lee B]

I did one over ten years ago but it was only 5 or 6 months late.

[schirallicpa]

Just faxed one in - I'll let you know.

 

[DANRVAN]

On 7/14/2023 at 7:45 AM, ILLMAS said:

partnership client that would like to do a retro election to January 1, 2022.  

If they have been filing as a partnership, then I believe the answer is no.  

On the other hand, if they had been filing 1120-S and had "reasonable cause" for failure to file a timely election then they should be good. 

Your research should turn up a rev. proc. with details.

[DANRVAN]

So they have not yet filed for 2022?  That might change my answer from above.  But have the partners been taking draws or GPs instead of salaries?

[ILLMAS]

11 hours ago, DANRVAN said:

If they have been filing as a partnership, then I believe the answer is no.  

On the other hand, if they had been filing 1120-S and had "reasonable cause" for failure to file a timely election then they should be good. 

Your research should turn up a rev. proc. with details.

I have looked over the rules, I have not seen a mention of a partnership not being able to file a late election, can you point me to the source.

 

Thanks

[Lee B]

I think what Danrvan is asking is. 'Since January 1st 2022 have their legal, accounting and payroll activities been handled as a Partnership or as an S Corporation?"

[ILLMAS]

35 minutes ago, cbslee said:

I think what Danrvan is asking is. 'Since January 1st 2022 have their legal, accounting and payroll activities been handled as a Partnership or as an S Corporation?"

Ah, as a partnership.

[WITAXLADY]

it is worth a try.. I have had success

D