The IRS has posted on its website guidance for C corporations that wish to change to S corporation status. The guidance lists four steps that corporations should take:
1.Timely file Form 2553, Election by a Small Business Corporation (which is due no more than 2 months and 15 days after the beginning of the tax year in which the election is to take effect).
2.Follow up with the Service if acknowledgment and approval of the S corporation election are not received.
3. File the final Form 1120, U.S. Corporation Income Tax Return, by the due date or extended due date.
4. File a Form 1120S, U.S. Income Tax Return for an S Corporation, by the due date or extended due date.
The guidance also discusses relief available to corporations that have not timely filed their S corporation election request. The guidance is available at www.irs.gov/businesses/corporations/article/0,,id=179841,00.html.
