Question

Do I need S-Corp Acceptance Letter (CP261) before filing corporate 1040?

Forum|Forum|6 years ago
January 30, 2020
1 reply
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I started a company though BizFilings in late 2019. The relevant dates are:

- IL SOS Acceptance 11/26/19

- Federal EIN received 12/2/19

- Form 2553 sent to IRS 12/2/19

According to the BizFilings rep, S-Corp acceptance letters (CP261?) are taking like 90+ days. I did my first-run of my personal taxes with estimates, and 2019 is going to be a big refund for me. My books are pretty easy for the (unapproved) S-Corp, but I can't file my personal 1040 until I have the K-1 from the company. Other than the obvious what-if-the-IRS-rejects-your-2553 risk, can I transmit my corporate 1040 and print my K-1 before I receive back the approval via a CP261? The business is starting to lift off the ground, and my personal refund would give me a much needed injection of capital.

I am the only shareholder.

Not A Product Question

A

AlanT222

If you are going to file a corporate return, you must file Form 1120S.

Form 1120S (U.S. Income Tax Return for an S Corporation) is available in TurboTax Business.

When you first start a return in TurboTax Business, you'll be asked to select the type of return you want to prepare. Select Business return and then select S Corporation to add Form 1120S to the return.

You will select 1st year filing.

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K

kronion0Author

Thank you for correcting my understanding of which form it is. To confirm, I can send this, electing it as an S corporation even before I have received approval from the IRS?

LindaB1993

The Form 2553, electing Sub-S election can be faxed to IRS for approval. The Fax Number is 855-887-7734

If the entity is not recognized in the IRS database as a Sub-Chapter S Corporation, you can mail in the Form 1120-S along with a copy of the Form 2553 requesting the election. It takes 2-3 weeks for an approval of the Form 2553. After the approval is received, the Corporate Return can be electronically filed.

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