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News and Views about Taxes

The Ides of March are almost upon us! Get those S corp returns done!

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For those of you who have S corporations, remember that if your 2009 tax year ended December 31 (which is probably true for most of you) your 2009 Form 1120S is due on March 15, 2010. If this is your first year filing as a S corporation, make sure that you take note of this for future reference – the return is due on the 15th day (or first business day after the 15th when the 15th falls on a weekend or a holiday) of the third month after the end of the tax year, and not the fourth month as is the case for your personal return.

If you intend to operate as an S corporation, you should have filed IRS Form 2553, Election by a Small Business Corporation, either within 2 months and 15 days of the beginning of your first tax year, or at any time during the year preceding the tax year in which it was to take effect. If you failed to make an election in a timely manner, you may be able to request relief and make a late election by filing Form 2553 with your initial 1120S. You can request relief if all of the following are true:

  • You fail to qualify to elect to be an S corporation solely because of the failure to timely file Form 2553.
  • You have reasonable cause for your failure to timely file Form 2553.
  • You have not filed a tax return for the tax year for which you want to make the election.
  • You file Form 2553 as an attachment to Form 1120S.
  • No taxpayer affected by the S corporation election (generally, the shareholders in the S corporation) has reported inconsistently with the S corporation election on any tax return for that tax year.
  • As always, if you have questions about your specific tax situation, you should consult a reputable tax professional in your area.


    Written by nctaxpro

    February 28, 2010 at 3:10 pm

    Posted in Federal, State, Taxes

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