Success with late S election

[Thomas E. Healy]

My client started his corporation early in 1999; I didn't start working with him in detail until this year, filing a 7004 for an extension for his S corporation. Once I got into the preparation, I discovered he had not file the Form 2553 S election in timely fashion. We decided to use Rev Proc 97-48 to get around the other expired late-filing provisions, and prepared the 1120S. In due course, IRS came back with a letter saying there was no S election on file (which I was expecting). At that point, we responded with a Form 2553 marked "filed pursuant to Rev. Proc. 97-48" across the top. Today, Ogden Service Center came back with a standard acceptance letter for the initial year. While the Rev Proc technically says to do this only if we have not heard from IRS within six months of filing the return, it appears that OSC overlooked this part of the procedure. You may want to consider this approach when all else fails, and filing an 1120 would be a disaster. --Solving your tax and business problems with Professional Service...Personal Attention Email: THea...@aol.com Web: http://members.aol.com/thealycpa/Tom_Healy_CPA.html << -------------------------------------------------- >> << The Charter and the Guidelines for Posting to this >> << newsgroup are at www.Misc-Taxes-Moderated.com >> << -------------------------------------------------- >>

[Barney Byrd]

"Thomas E. Healy" <theal...@aol.com> wrote: > My client started his corporation early in 1999; I didn't > start working with him in detail until this year, filing a > 7004 for an extension for his S corporation. Once I got into > the preparation, I discovered he had not file the Form 2553 > S election in timely fashion. > We decided to use Rev Proc 97-48 to get around the other > expired late-filing provisions, and prepared the 1120S. What about Rev. Proc 98-55? I thought it superseded Rev. Proc. 97-48. Barney Byrd B_B...@prodigy.net << -------------------------------------------------- >> << The Charter and the Guidelines for Posting to this >> << newsgroup are at www.Misc-Taxes-Moderated.com >> << -------------------------------------------------- >>

[LoTax]

This is a very interesting result. I have shied away from Rev Proc 97-48 two or three times, because of its very narrow application. When you say Ogden SC came back with the "standard acceptance letter" I take that to mean that they *didn't* mention the Rev Proc in their letter. Did they mention it? Did they mention any "relief" in their accepting the late-filed election? You're very right: if nothing else is acceptable, ask for anything you want, under any provision that sounds close. Who knows.... You may get what you ask for. LoTax << -------------------------------------------------- >> << The Charter and the Guidelines for Posting to this >> << newsgroup are at www.Misc-Taxes-Moderated.com >> << -------------------------------------------------- >>

[Thomas E. Healy]

> What about Rev. Proc 98-55? I thought it superseded Rev. > Proc. 97-48. Rev. Proc. 97-40 was superseded, but not Rev. Proc. 97-48. --Solving your tax and business problems with Professional Service...Personal Attention Email: THea...@aol.com Web: http://members.aol.com/thealycpa/Tom_Healy_CPA.html << -------------------------------------------------- >> << The Charter and the Guidelines for Posting to this >> << newsgroup are at www.Misc-Taxes-Moderated.com >> << -------------------------------------------------- >>

[Thomas E. Healy]

> This is a very interesting result. I have shied away from > Rev Proc 97-48 two or three times, because of its very > narrow application. > When you say Ogden SC came back with the "standard > acceptance letter" I take that to mean that they *didn't* > mention the Rev Proc in their letter. Did they mention it? > Did they mention any "relief" in their accepting the > late-filed election? > You're very right: if nothing else is acceptable, ask for > anything you want, under any provision that sounds close. > Who knows.... You may get what you ask for. The letter does not mention Rev Proc 97-48 or any relief. I'll quote: ----- Your election to be treated as an S-corporation with an accounting period of December is accepted. The election is effective beginning XXX,XX 1999, subject to verification if we examine your return. If your effective date is not as requested, it will have been changed for one of two reasons. Either your election was made after the 15th day of the third month of the tax year to which it applies,... ----- Well, we got exactly what we requested, and the change paragraph doesn't apply. --Solving your tax and business problems with Professional Service...Personal Attention Email: THea...@aol.com Web: http://members.aol.com/thealycpa/Tom_Healy_CPA.html << -------------------------------------------------- >> << The Charter and the Guidelines for Posting to this >> << newsgroup are at www.Misc-Taxes-Moderated.com >> << -------------------------------------------------- >>