I am a brand new corporation and I filed a subchapter S Statement. I just got a letter from the IRS saying that they were giving me a 30 day extension to respond to the letter. The letter said that they can't process my form 2553 untill I have the shareholder's name and signature for each shareholder. I don't have any shareholders. Maybe I should. I thought I would own all the shares of stock and the be the sole stockholder. What should be done!

Karen

Just sign the Form 2553 as the being the 100% shareholder. Technically, you are the shareholder of the corporation, and being the sole shareholder, you are the 100% shareholder.

The IRS wants to know basically that all the shareholders are giving consent to convert to a S corporation. Thus, if no shareholders have given consent by signing on Form 2553, they cannot approve the S corporation election.

Even if the 30 day period has gone, please sign the consent in the appropriate places and mail the IRS letter asap you might still be granted an S Corporation election.

__________________
Ask TaxGuru
Please refer to the legal disclaimer.