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Old 05-21-2015, 04:13 PM
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IRS Form 2553

Hi all,

I registered a Limited Liability Ccompany (LLC) just last year and I am the only member for now, and I also had some personal income last year too. I asked a certified Tax Accountant to do my Taxes for 2014 and he decided to treat my LLC as an S Corporation for my Taxes. I was not very comfortable with him treating my LLC as an S Corporation because I thought only US citizens can have S Corporations, I have a Green Card. But he said I can also treat my LLC as an S Corporation so he went ahead and did my Taxes on the last day (March 15) of this year's tax season. On thesame day he did my Taxes he also faxed a completed Form 2553 to the IRS. Since it was the last day for Taxes we had to try for a very long time before we could send the Form 2553 Fax.

Now on May 6, 2015 I received a mail from IRS and they have 2 letters in the mail. I have attached copies of the mails here for your reference.

When I contact my Accountant and told him, he said it is a minor issue, and that IRS sent the letter because they may not have received the Form 2553 we faxed them, so all he is going to do is resend it to them.

Please my question is, "is my Accountant correct that all we need to do is send the completed Form 2553 to the IRS?'

Attached Images
File Type: jpg IRS Letter 1 Page 1.jpg (27.6 KB, 4 views)
File Type: jpg IRS Letter 1 Page 2.jpg (39.4 KB, 0 views)
File Type: jpg IRS Letter 1 Page 3.jpg (26.3 KB, 0 views)
File Type: jpg IRS Letter 2 Page 1.jpg (34.7 KB, 2 views)
File Type: jpg IRS Letter 2 Page 2.jpg (9.4 KB, 1 views)


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Old 05-22-2015, 02:08 PM
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Posts: 5,100
I registered a Limited Liability Ccompany (LLC) just last year and I am the only member for now, and I also had some personal income last year too. I asked a certified Tax Accountant to do my Taxes for 2014 and he decided to treat my LLC as an S Corporation for my Taxes. I was not very comfortable with him treating my LLC as an S Corporation because I thought only US citizens can have S Corporations, ==============>>In general yes however one exception; even if you are not a US citizen/ a US resident alien(a green card holder I mean), aslongas you are treated as a US resident for tax purposes, yes you may have an S corp in US. In the case of buying an ownership interest in an existing small business here in the US, if the business is structured as a LLC or as a "C" corp (not an "S" corp, which can be owned only by U.S. nationals), a non-resident aliens may become an owner as long as the state of incorporation doesn't prohibit ownership by foreign national. So, to elect S corp treatment, the LLC must meet all of the same restrictions that a corp must meet. One of those restrictions is that no members of the LLC can be non-resident aliens. Therefore, having even one member who is non-US resident and not a citizen of the US will prevent the LLC from electing to be treated as an S corp.





I have a Green Card. But he said I can also treat my LLC as an S Corporation so he went ahead and did my Taxes on the last day (March 15) of this year's tax season.====>Correct; as said as a US green card holder, you can set up an S corp in US;




On thesame day he did my Taxes he also faxed a completed Form 2553 to the IRS. Since it was the last day for Taxes we had to try for a very long time before we could send the Form 2553 Fax.========>> The Form 2553 is used to be treated as an S Corp. If you file the form (and there are specific time frames for filing). The corp will receive an acknowledgement and approval of the S corp election. If the notification of approval is not received, the corporation should follow-up with the Service Center where the Form 2553 was filed. If you have the copy of the acceptance the contact the number on the notice you received and be prepared to fax them the copy. If you did not receive a notification of acceptance contact the service center where you mailed the Form 2553. If you did not file form 2553 then you did not request to be treated as an S Corp.



Now on May 6, 2015 I received a mail from IRS and they have 2 letters in the mail. I have attached copies of the mails here for your reference.==========> You received a letter stating irs has no record of an accepted form 2553 so your 1120s for was not valid for the tax period shown above.



When I contact my Accountant and told him, he said it is a minor issue, and that IRS sent the letter because they may not have received the Form 2553 we faxed them, so all he is going to do is resend it to them.========>>>>>>>Agreed as mentioned above.



Please my question is, "is my Accountant correct that all we need to do is send the completed Form 2553 to the IRS?'=============>>>>>>Correct. You need to file within 75 days of formation for the election to take effect from the date of formation.You will receive acknowledgment and approval from the IRS. If not, follow-up with the Service Center where Form 2553 was filed. To obtain S-Corp tax treatment for state taxes, you may need to file additional documents with your state department of revenue or other taxation authority
PS i can not read files attached by you



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Old 05-22-2015, 08:07 PM
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Join Date: May 2015
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IRS Form 2553 - Letters I received in PDF

Thank you for your kindness in replying to my post. Your answers were very helpful. I appreciate it.

Now concerning the attached files, they are PNG files and you may have to download them and open them with Windows Photo Viewer that comes free with Windows Operating System.

Based on your advise I was looking for the Phone number for the Service Center my CPA sent the Form 2553 to, so that I can call to follow up as you but I could not find it. Do you happen to have the phone number for the Service Center below:

Department of the Treasury
Internal Revenue Service
Cincinnati, OH 45999
fax # 859-669-5748



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Old 05-22-2015, 09:00 PM
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Quote:
Originally Posted by patmien View Post
Thank you for your kindness in replying to my post. Your answers were very helpful. I appreciate it.

Now concerning the attached files, they are PNG files and you may have to download them and open them with Windows Photo Viewer that comes free with Windows Operating System.

Based on your advise I was looking for the Phone number for the Service Center my CPA sent the Form 2553 to, so that I can call to follow up as you but I could not find it. Do you happen to have the phone number for the Service Center below:

Department of the Treasury
Internal Revenue Service
Cincinnati, OH 45999
fax # 859-669-5748
i guess you can contact here for the info ;Call them at 1-844-USA-GOV1 (1-844-872-4681)



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