The normal deadline
To be effective for a tax year, Form 2553 generally must be filed within two months and 15 days after the start of that year (March 15 for a calendar-year business), or any time in the prior year.
Simplified late-election relief
Under Revenue Procedure 2013-30, the IRS generally grants late S elections when:
- the request is made within 3 years and 75 days of the intended effective date,
- the business intended to be an S corporation and failed to qualify only because the election was late,
- there was reasonable cause for the late filing, and
- the business and all shareholders have reported consistently with S corporation status (or will).
The late Form 2553 is filed with a reasonable-cause statement and the required notation referencing the revenue procedure. An LLC that never elected corporate status can generally elect S status in the same filing.
The state side
- New Jersey generally treats federal S corporations as New Jersey S corporations automatically.
- New York requires its own election (Form CT-6), so a late federal election should be paired with the New York side.
Frequently asked questions
Can I file a late S corporation election?
Often yes. Revenue Procedure 2013-30 provides simplified relief for late elections made within 3 years and 75 days of the intended effective date, with reasonable cause.
What counts as reasonable cause?
Common examples are relying on an advisor who failed to file or being unaware of the requirement. The statement must explain the facts.
What if it's been more than 3 years and 75 days?
Relief may still be available in some cases, but it may require a private letter ruling, which is slower and more expensive.
Do I need to make a New York election too?
Yes, if the business has New York filing obligations. New York requires a separate S election on Form CT-6.