Why was my S-Corporation extension rejected by the IRS?

Modified on Wed, 05 Apr 2023 at 01:28 PM

If your S Corporation extension has been rejected because the company did not file Form 2553 to elect S Corporation status, it is because the company is not yet recognized as an S Corporation by the IRS. Form 2553 must be filed with the IRS to elect S Corporation status, and it must be filed within certain time frames.


If the S Corporation has not yet filed Form 2553, the company is not eligible for an S Corporation extension. The company must file the form and wait for the IRS to approve the S Corporation status before requesting an extension.


If the S Corporation did file Form 2553 but it was not processed by the IRS, you should contact the IRS to determine why the form was not processed and how to proceed. You may need to re-file the form or provide additional information to the IRS.


IMPORTANT: As it relates to your tax extension, if your extension is rejected for this reason, you should resubmit your extension as a C Corporation to get the extension approved and then follow up and address the S Corp with the IRS. Not having an approved extension will only compound the issue and may subject you to late filing penalties. 


 



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