Making an S Election

If you were a calendar year C corporation or you incorporated within 2021 and want to be an S corporation for 2021, you must timely file your election on Form 2553. The deadline: March 15, 2021. The form can’t be filed electronically and digital signatures are not allowed. You cannot wait until you file the corporation’s tax return to make the election (although the National Taxpayer Advocate has suggested that new corporations be allowed to make the election on their first Form 1120-S). #IdeaoftheDay